The annealing of an AlN buffer layer in a carbon-saturated N 2 -CO gas on a sapphire substrate was investigated. The crystal quality of the buffer layer was significantly improved by annealing at 1650-1700°C. An AlN buffer layer with a thickness of 300 nm was grown by metalorganic vapor phase epitaxy (MOVPE), and was annealed at 1700°C for 1 h. We fabricated a 2-µm-thick AlN layer on the annealed AlN buffer layer by MOVPE. The full widths at half maximum of the (0002)-and (10 12)-plane X-ray rocking curves were 16 and 154 arcsec, respectively, and the threading dislocation density was 4.7 ' 10 8 cm %2 .