A method of manufacturing a magneto-resistive device is provided for reducing a degradation in device characteristics due to annealing. The method includes the steps of depositing constituent layers, which make up a magneto-resistive layer on a base, patterning one or more layers of the constituent layers, forming an insulating layer in a region in which the one or more layers of the constituent layers have been removed by the patterning. For forming the insulating layer, the insulating layer is deposited while irradiating an ion beam of a gas mainly containing a rare gas toward the base after the step of patterning.

 
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