AlN films including Fe nanoparticles have been prepared from sputtered film
s with Al-N-Fe composition by annealing in a vacuum furnace. Faraday rotati
on angles and M-H loops of AlN-Fe granular films have been measured. The ma
ximum value of Faraday rotation angle is estimated to be 1.1 degrees / mum
at a wavelength of about 500 nm. The microstructures of the films are chara
cterized by transmission electron microscopy and X-ray diffractometry. The
structural features are related to the magnetic properties.