NiSi is considered as one of the candidates to replace TiSi@sub 2@ contact in deep sub-miron metallization due to its low resistivity and lower formation temperature. Sputter deposition of Ni thin film is one of the crucial steps in nickel salicide (self-aligned silicide) process. One problem associated with sputter deposition of Ni is that Ni is a ferromagnetic material and is difficult to sputter. A Ni sputtering target results in low magnetic flux intensity in front of the target because the target shunts a considerable percentage of magnetic flux from system magnets. High magnetic flux density can be obtained by using a high pass-through flux (PTF) Ni target that allows maximum magnetic flux permeate through a target. In this study, the effects of target PTF and sputtering process parameters such as Ar pressure, sputtering power and substrate temperature on sputter process were studied. Ni targets with the PTF% of 40% (high PTF) and 30% (low PTF) were tested. Ni thin films were deposited on 200 mm (100) Si wafers. Sputter deposition rate, I-V characteristics, film sheet resistance and film uniformity were measured under various sputter conditions. The high PTF target resulted in low sputtering impedance and better Rs film uniformity. Rapid thermal processing (RTP) was carried out to form nickel silicides at temperatures between 300C to 900C for various times. Phases and microstructure of the films were characterized. The sheet resistance decreased significantly after annealing at 400C to 600C due to formation of NiSi. The significant increase in sheet resistance after annealing above 700C was attributed to formation of NiSi@sub 2@ phase.