Thin semiconducting films of magnesium doped indium‐ and tin oxide are prepared by thermal atomic layer deposition (ALD). The metal oxide films are deposited at 200 °C from the precursors trimethylindium, tetrakis(dimethylamido)tin, bis(ethylcyclopentadienyl)magnesium and water as oxidant. These thin‐films are observed to be amorphous by electron microscopy and X‐ray diffraction. However, they exhibited a near‐range atomic order with correlation lengths of up to 10 Å, as demonstrated by high energy total scattering at grazing incidence employing synchrotron radiation. Even minor alterations in composition reveal a significant impact on the thin‐film transistor (TFT) device parameters, due to magnesium's high oxygen binding capability and its ability to inhibit the formation of oxygen vacancies, resulting in a decrease of free charge carriers in the material. Stability tests indicate a device degradation after storage in ambient conditions due to water adsorption on the surface, which could be reversed by an additional annealing step which qualify the films as robust. This studie demonstrate the possibility of employing minor amounts of high band gap oxides such as MgO to manipulate and control the electric behavior of the active channel layer performance in inorganic TFT devices.