A magnetically enhanced plasma apparatus includes a hollow cathode target assembly; an anode positioned on top of the hollow cathode target assembly, thereby forming a gap between the anode and the hollow cathode target assembly; a cathode magnet assembly; a row of magnets that generate a magnetic field in the gap and a magnetic field on a surface of the hollow cathode target assembly with the cathode magnet assembly such that magnetic field lines are substantially perpendicular to a surface of the hollow cathode target assembly; an electrode positioned adjacent to the row of magnets behind the gap; a first radio frequency (RF) power supply coupled to the electrode, wherein the electrode is coupled to ground through an inductor; and a second radio frequency (RF) power supply coupled to the hollow cathode target assembly. The second RF power supply ignites and sustains plasma in the hollow cathode target assembly. A frequency and power of the second RF power supply are selected to increase at least one of a degree of dissociation of feed gas molecules and degree of ionization of feed gas atoms. A frequency and power of the first RF power supply are selected to increase a degree of dissociation of feed gas molecules to form a layer from sputtering hollow cathode target material onto a substrate.