AIGaN HFETs are attractive devices for high power microwave applications. Sapphire, which is the typical substrate for AlGaN epitaxy, has a very poor thermal conductivity, and the power performance of AlGaN HFETs fabricated on sapphire substrates is severely limited due to this large thermal impedance. We report on HFETs fabricated on high thermal conductivity electrically insulating SiC substrates. Excellent RF power performance for large area devices is demonstrated. On-wafer CW measurements at 10 GHz of a 320 micron wide FET resulted in an RF power density of 2.8 Watts/mm, and measurements of a 1280 micron wide FET resulted in a total power of 2.3 Watts. On-wafer pulsed measurements, at 8 GHz, of a 1280 micron wide FET resulted in a total power of 3.9 Watts. Design of a hybrid microwave amplifier will be discussed.