This article is aimed at extracting an accurate multibias small signal equivalent circuit for on‐wafer microwave HEMTs, which are based on AlGaAs/GaAs heterostructure. The main advantage of the on‐wafer characterization consists of having the possibility to determine the real microwave performance of the transistors, since the inclusion of additional parasitic effects, such as in the case of the packaging and wire bonding, are avoided. The presented small signal modeling technique is direct. As a matter of fact, the equivalent circuit elements are extracted from scattering parameter measurements by using only analytical formulas, without any optimization procedures. The validity of the obtained circuit models is successfully verified by comparing simulated and measured data of scaled GaAs HEMTs up to 50 GHz. © 2009 Wiley Periodicals, Inc. Microwave Opt Technol Lett 51: 1958–1963, 2009; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/mop.24492