A GaN-on-Si device structure and a method of fabrication are disclosed for improved die yield and device reliability of high current/high voltage lateral GaN transistors. A plurality of conventional GaN device structures comprising GaN epi-layers are fabricated on a silicon substrate (GaN-on-Si die). After processing of on-chip interconnect layers, a trench structure is defined around each die, through the GaN epi-layers and into the silicon substrate. A trench cladding is provided on proximal sidewalls, comprising at least one of a passivation layer and a conductive metal layer. The trench cladding extends over exposed surfaces of the GaN epi-layers, over the interface region with the substrate, and over the exposed surfaces of the interconnect layers. This structure reduces risk of propagation of dicing damage and defects or cracks in the GaN epi-layers into active device regions. A metal trench cladding acts as a barrier for electro-migration of mobile ions.