The (In0.97-xCoxMg0.03)2O3 films with different Co concentration are prepared using RF magnetron sputtering. The XRD and XPS measurements show that the films are highly oriented and both Co and Mg elements present valence state of +2. The EXAFS spectra show that only substitutional Co ions exist in the film with x = 0.02. However, the films with higher Co concentration (x > 0.02) form separate phases of substitutional Co and metallic Co clusters. All the films exhibit n-type conductivity and the carrier concentration firstly decreases and then increases with Co doping. The transport mechanisms are dominated using Mott variable range hopping at low temperature and Hard bandgap hopping at high temperature. The Co dopant can effectively alter the MR characters, which undergoes a clear transition from negative MR to positive MR. All the films exhibit room temperature ferromagnetic hysteresis loop. Clear increase of ferromagnetic hysteresis loop and saturation magnetic moment are observed due to the incorporation of Co ions. The ferromagnetism is ascribed to oxygen vacancies-induced bound magnetic polarizations. The relative percentage of substitutional Co ions decrease with Co doping, which leads to the decreasing of number of bound magnetic polarons induced by oxygen vacancies, and then weaken the Ms.
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