Nanometer ferromagnetic metal-semiconductor matrix Fe-In2O3 granular films are fabricated by the radio frequency sputtering. Magnetic properties and the giant magnetoresistance (GMR) effect of Fex(In2O3)1-x granular film samples are studied. The result shows that the magnetoresistance (MR) ratio value of the granular film samples with Fe volume fraction x = 35% is 4.5% at room temperature. The temperature dependence (r = 1.5-300 K) of the MR ratio value of Fe0.35(In2O3)0.65 granular films shows that value below 10 K increases rapidly with the decrease of the temperature, and when T = 2 K, value is 85%. Through the study of the dependence of low field susceptibility on temperature and the hysteresis loops at different temperatures, it has been found that, when the temperature decreases to a critical point TP = 10 K, the change of the structure in Fe0.35(In2O3)0.65 granular films results in the transformation of state from ferromagnetic to spin-glass-like. The remarkable increase of the MR ratio value of Magnetic properties and the giant magnetoresistance (GMR) effect of Fex (In 2 O 3) 1-x granular film samples were studied. The result shows that the magnetoresistance ( MR) ratio value of the granular film samples with Fe volume fraction x = 35% is 4.5% at room temperature. The temperature dependence (r = 1.5-300 K) of the MR ratio value of Fe 0.35 (In 2 O 3) 0.65 granular films shows that value below 10 K increases rapidly with the decrease of the temperature, and when T = 2 K, value is 85%. Through the study of the dependence of low field susceptibility on temperature and the hysteresis loops at different temperatures, it has been found that when the temperature decreases to a critical point TP = 10 K, the change of the structure in Fe 0.35 (In 2 O 3) 0.65 granular films results in the transformation of state from ferromagnetic to spin-glass-like. The remarkable increase of the MR ratio value of