A Nd:YAG laser processing on a SnO2‐system thin films for FPD manufacturing is investigated as an alternative to photolithographic etching on ITO. Because of the difficulty in realizing a low energy process on SnO2 due to a high melting point, we experimentally found the proper deposition condition and composition of SnO2‐system thin films. By considering two physical mechanisms, namely, plasmon oscillation and inverse bremsstrahlung process, we achieved satisfactory laser processing using only 2 J/cm2 of laser energy. This result leads to the possibility of high‐speed electrode patterning suitable for FPD mass production.