Abstract: A magnetoresistive (MR) transducer has at least one insulative layer made of tetrahedral amorphous carbon (ta-C). The ta-C layer is formed by filtered cathodic arc deposition, has an essentially zero concentration of hydrogen and can serve as a read gap for the transducer. The hydrogen-free t-aC read gap has high thermal conductivity, keeping an adjoining MR sensor from overheating during operation. This extends sensor lifetimes and/or improves sensor performance. The read gap also has low defects and porosity, preventing unwanted electrical conduction or shorting between a sensor and a shield. The high hardness of the read gap resists plasma and chemical etching processes such as ion milling that are used to form the sensor. The increased hardness and reduced defects and porosity allow the read gaps to be made thinner without risking electrical shorting. Other hydrogen-free t-aC layers are employed for other sensor elements where electrical insulation and reduced thickness are important.