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Nanogranular Fe0.35/(In2O3)0.65 films with complex magnetic structure were prepared by the rf sputteringmethod. An extra-large magnetoresistance up to 506% was obtained at 2.2K, which is two orders of magnitudelarger than that obtained at room temperature. This is related to the interaction with the impurities influencingthe local magnetization, which is quite different from the spin-dependent tunnelling effect at room temperature.The interspacing Fe atoms dispersed in the In2 O3 matrix play an important role in the transportation propertiesof carriers at low temperature.