Low Resistance MgO Capping Layer for Perpendicularly Magnetized Magnetic Tunnel Junctions

A magnetic tunnel junction (MTJ) is disclosed wherein a free layer (FL) interfaces with a first metal oxide (Mox) layer and second metal oxide (tunnel barrier) to produce perpendicular magnetic anisotropy (PMA) in the FL. In some embodiments, conductive metal channels made of a noble metal are formed in the Mox that is MgO to reduce parasitic resistance. In a second embodiment, a discontinuous MgO layer with a plurality of islands is formed as the Mox layer and a non-magnetic hard mask layer is deposited to fill spaces between adjacent islands and form shorting pathways through the Mox. In another embodiment, end portions between the sides of a center Mox portion and the MTJ sidewall are reduced to form shorting pathways by depositing a reducing metal layer on Mox sidewalls, or performing a reduction process with forming gas, H2, or a reducing species.