Abstract: A capillaritron ion beam sputtering system and a thin film production method are disclosed. By utilizing reactive capillaritron ion beam sputtering deposition, argon and oxygen are passed through a capillaritron ion source simultaneously. Argon is being ionized and accelerated by a voltage to bombard a zinc target and create zinc atoms, while oxygen atoms are created at the same time. Zinc atom and oxygen atom are combined to form ZnO to deposit on a substrate. The stoichiometric properties, deposition rate, transmission properties, surface roughness and film density of the as-deposited film can be altered by adjusting capillaritron ion beam energy and oxygen partial pressure. Using preferred processing parameters, the root-mean-square surface roughness of the as-deposited film can be smaller than 1.5 nm, while the transmission coefficient at visible range can be greater than 80%.