In order to etch CoFeB and MgO constituting the magnetic tunnel junction (MTJ) layer of magnetic random access memory, rf-biased reactive ion beam etching (RIBE) with a H2:NH3 gas mixture was introduced and the etching characteristics were investigated. The H2:NH3 gas mixture of 8:1 was used for rf-biased RIBE because the etch selectivity is increased with H2 percentage in the H2:NH3 gas mixture while the etch rates of MTJ materials are the highest between 2:1 and 1:1 ratio of H2:NH3 due to the synergy effect of H2 and NH3 in the etching of MTJ materials. When a high rf power was applied to the substrate (high rf-biasing) during RIBE, even though etch rates of MTJ materials were increased, the etch selectivities of MTJ materials over hard mask materials were decreased possibly due to the high physical sputtering effect. However, when small rf-biasing was added to the substrate during RIBE, improved etch characteristics such as higher etch selectivity of MTJ over the top electrode (TE) material, improved etch anisotropy of the MTJ pattern masked with TE, and a thinner sidewall residue on the MTJ pattern could be observed. The improvement in etch characteristics by the addition of small rf-biasing during RIBE is believed to be related to the increased chemical etching effect through H2/NH3 gas dissociation and the increased H/NH ratio in the plasma generated just above the substrate without increasing the physical sputtering effect. Specifically, for the substrate located on the insulating substrate holder, the charging of the substrate could be removed without using an electron emitting neutralizer by supplying electrons from the plasma generated by rf-biasing during RIBE.