This paper discusses selected design issues important to the operation of high‐speed AlInAs/GaInAs heterojunction bipolar transistors (HBTs). Simulation results reveal that velocity overshoot is an important effect in AlInAs/GaInAs HBTs. It is found to first order that the electron average speed through the base and base/collector depletion region is near 5×107cm/s. Introduction of a built‐in electric field in the base region improves theft. However, the resultant improvement of the cutoff frequency in the AlInAs/GaInAs HBT is not as significant as in the AlGaAs/GaAs HBT because of the already larger electron velocity in the GaInAs base. Compositional grading in the emitter is not suggested in AlInAs/GaInAs HBTs because it degrades the dc and ac characteristics. The effects of a base setback layer at the emitter/base junction on dc current gain and cutoff frequency have also been studied. It is found that both the doping density and the thickness of the setback layer affect the cutoff frequency, and that the setback layer always degrades the intrinsic performance. The intrinsic setback layer has the lowest cutoff frequency whilep‐doped setback layer has the highest one.