Unlike the conventional GaAs- and InP-based enhancement/depletion-mode (E/D-mode) transistors, the improved gate characteristics of the AlGaAs/InGaAs E-mode high electron mobility transistors (HEMTs) by way of hybrid gate recesses to remove the n-AlAs/i-GaAs/n-AlGaAs virtual channel layers upon 2DEG channels are demonstrated. As compared to the D-mode device (sample A), the gate reverse currents are effectively reduced by 45 and 102 times for the E-mode devices with additional gate recess time of 24 s (sample B) and 30 s (sample C) to remove part of the virtual channel layers, respectively. Under gate forward bias, the hybrid gate recesses also enable the gate turn-on voltages to increase. Furthermore, the threshold voltages of –1.25, 0.09, and 0.22 V are observed in the samples A, B, and C, respectively. The maximum transconductances of 187.3, 209.2, and 243.4 mS/mm and saturation current density of 482.8, 410.6, and 347.4 mA/mm are obtained in the samples A, B, and C, respectively.