Computer modeling using finite element analysis (FEA) was performed to examine the effects of constructing multilayered thick film inductors using an artificially modulated magnetic composite structure. It was found that selectively introducing regions of low permeability material increased both the inductance and the current carrying capacity compared to thick film inductors made with single material magnetic cores. Permeabilities of the composite cores ranged from 1 to 220. The frequency for the models ranged from 0 to 5.0 MHz. Experimental devices were constructed using thick film screen printing techniques and characterized to validate the models and to determine the effectiveness of the design modifications. Quantitative comparisons were made between inductors of single permeability cores with inductors produced with magnetic composite cores. It was found that significant (> 130%) increases could be gained in saturation current with only a 12% decrease in inductance. It was found that the key parameters affecting performance were 1) the placement of low permeability regions, 2) the extent of non-uniform flux distribution within the structure, and 3) the volume fraction of low permeability material.