A method for highly controllable etching of AlGaN/GaN for the fabrication of high sensitivity HEMT based sensors is developed. The process consists of cyclic oxidation of nitride with O₂ plasma using ICP-RIE etcher followed by wet etching of the oxidized layer. Previously reported cyclic oxidation-based GaN etching obtained very slow etching rate (∼0.38nm/cycle), limited by oxidation depth. The proposed approach allows fine control of the oxidation enabling the formation of accurately controlled recess of very thin (20∼30nm) barrier layers. With optimized power settings, etch rates from ∼0.6 to ∼11nm/cycle were obtained. AFM results did not show any increase in surface roughness after etching, indicating that surface quality of the etched layer was not affected by the etching process.