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We have investigated the microstructures of Co–Al–O granular thin films, which were prepared by the sputter-deposition technique with various oxygen partial pressures. The constituent phases, grain sizes of granular particles, and width of insulating channels have been evaluated quantitatively. The specimen with the optimum giant magnetoresistance (GMR) is composed of nanoscale Co particles, and these are completely isolated by amorphous aluminum oxide channels. The GMR behavior observed in the Co–Al–O films has a close correlation with the width of the insulating channel and the grain size of the magnetic particles, which is consistent with the spin-dependent tunneling conduction mechanism of GMR

The microstructures of Co-Al-O thin films of wide varieties of compositions are studied by transmission electron microscopy and small angle x-ray scattering ͑SAXS͒. In the superparamagnetic specimens, high resolution electron microscope images reveal that isolated spherical Co particles are surrounded by an amorphous aluminum oxide matrix. However, in the soft ferromagnetic films, the shape of the Co particles is prolate ellipsoidal. SAXS intensities from the soft magnetic specimens decrease inversely with the wave vector, q, in a low wave-vector region, while an interparticle interference peak is observed for the superparamagnetic specimens. The scattering profiles of the soft magnetic films imply that the Co particles have a cylindrical shape and are randomly oriented. The correlation between the magnetic properties and the microstructures is discussed.