Process and apparatus for producing transparent electrical conducting thin films by activated reactive evaporation. Thin films of low melting point metals and alloys, such as indium oxide and indium oxide doped with tin, are produced by physical vapor deposition. The metal or alloy is vaporized by electrical resistance heating in a vacuum chamber, oxygen and an inert gas such as argon are introduced into the chamber, and vapor and gas are ionized by a beam of low energy electrons in a reaction zone between the resistance heater and the substrate. There is a reaction between the ionized oxygen and the metal vapor resulting in the metal oxide which deposits on the substrate as a thin film which is ready for use without requiring post deposition heat treatment.