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In this contribution the authors report on studies of the sintering and permeability behaviors of Ni- and Mg-Cu-Zn ferrites for multilayer devices. The effects of powder morphology and sintering additives on the microstructure formation are investigated. Materials based on sub-micron powders obtained by fine milling (with and without sintering additive) and chemically prepared nanoscale ferrite powders are compared. Both powder routes provide high permeability ferrites (mü = 900 for Ni- and mü = 500 for Mg-Cu-Zn ferrites) although their microstructure is markedly different. The potential of nanoscale ferrite powders for the fabrication of inductors with dense and homogeneous microstructures and high permeability is evaluated. The use of nanopowders is a promising alternative to minimize the addition of flux systems which might cause interdiffusion problems during cofiring of multilayer stacks. Moreover, new concepts of two step sintering of nanoscale powders are tested.