In this paper, an indium–tin oxide (ITO) thin-film patterning method for higher pattern quality and productivity compared to the short-pulsed laser direct writing method is presented. We sputtered a thin ITO layer on a glass substrate, and then, plated a thin gold layer onto the ITO layer. The combined structure of the three layers (glass–ITO–gold) was patterned using laser-induced plasma generated by an ytterbium pulsed fiber laser (λ=1064nm). The results showed that the process parameters of 50mm/s in scanning speed, 14ns pulse duration, and a repetition rate of 7.5kHz represented optimum conditions for the fabrication of ITO channels. Under these conditions, a channel 23.4μm wide and 20nm deep was obtained. However, built-up spikes (∼15nm in height) resulted in a decrease in channel quality, and consequently, short circuit occurred at some patterned positions. These built-up spikes were completely removed by dipping the ITO layer into an etchant (18wt.% HCl). A gold masking layer on the ITO surface was found to increase the channel surface quality without any decrease in ITO thickness. Moreover, the effects of repetition rate, scanning speed, and etching characteristics on surface quality were investigated.