Electron‐beam exposure and computer simulation are used to characterize the performance of Ge0.1Se0.9inorganic resist and examine the fundamental mechanisms of resist action. A first‐order model based on the energy density of electrons deposited in the active region along the interface of the sensitized layer and the resist is developed. Resist sensitivity as a function of sensitized‐layer thickness and accelerating voltage are calculated with the Monte Carlo method and compared with experimental results. Special test patterns including multiscanning are designed to explore lateral diffusion of silver in the sensitized layer and proximity effect due to backscattering. With Ge0.1Se0.9resist and e‐beam direct writing sub‐half‐micrometer working lithography can be achieved on silicon substrate at incident doses comparable with that needed for polymethylmethacrylate (PMMA) polymer resists.