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What exactly does it mean when we say 'increase the transconductance of a mosfet'? What is the advantage of having a high transconductance mosfet?

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A MOSFET is a transconductance device in that an input voltage controls an output current or, in terms of gain, current out / voltage in. Current/voltage is conductance and the word "trans" is placed in front of the word "conductance" to imply the main operating parameter of such a device.

So a device with more transconductance means that it produces a bigger change in output current for a change in input voltage. Not always desirable of course but pretty useful in a lot of applications.

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    \$\begingroup\$ High transconductance means fewer stages of gain, or quicker switching (speed being gm/C). \$\endgroup\$ Commented Jun 5, 2017 at 13:54
  • \$\begingroup\$ @analogsystemsrf Are you saying that a higher transconductance rating on the datasheet corresponds with lower "gain"? \$\endgroup\$
    – NTDLS
    Commented May 9, 2018 at 2:24

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