The influence of alloy composition on the noise behavior of heterostructure semiconductor devices is investigated by using a rigorous two-dimensional physical simulator. The model takes into account non-stationary transport properties and quantization effects to allow a better understanding of the carrier transport properties inside the heterostructure devices and consequently to explain the noise performance ofthese devices by making use ofthe microscopic nature ofthe model. As an example, the model is applied to study the effects of alloy composition and the resulting band discontinuity on the 2DEG properties and on the noise performance of Hetero-FETs at millimeter-wave frequencies, and to extract the optimum alloy composition which leads to the minimum noise figure in different frequency ranges.