Single‐crystal layers of AlN have been grown on sapphire substrates between 1000 and 1100 °C by vapor‐phase reaction of aluminum chlorides with ammonia. The purity, color, crystallinity, growth morphology, and electrical resistivity of the epitaxial layers have been investigated. Infrared specular reflection measurements showed the presence of an appreciable strain at the AlN‐sapphire epitaxy interface. Optical absorption data strongly suggest the AlN is adirectband‐gap material with a value of about 6.2 eV at room temperature.