Thin-film transistors (TFTs) with zinc oxide channel layers were fabricated through a simple and low-cost solution process. Precursor solution concentration, annealing temperature, and the process were controlled for the purpose of improving the electrical properties of ZnO TFTs and analyzed in terms of microstructural scope. The fabricated ZnO films show preferential orientation of the (002) plane, which contributes to enhanced electron conduction and a dense surface. The results show that the TFT characteristics of the film are clearly affected by the microstructure. The optimized TFT operates in a depletion mode, shows n-type semiconductor behavior, and is highly transparent (>90%) within the visible light range. It exhibits a channel mobility of 9.4 cm(2)/V.s, a subthreshold slope of 3.3 V/decade, and an on-to-off current ratio greater than 10(5). In addition, the result of N(2) annealing shows the possibility of improvement in electrical property of the ZnO TFTs.