A planar inductor comprises a metal element (11-14) on a substrate (300, 310), said metal element being provided with at least one groove (20) extending along and into said element from at least one surface (2) of said element. Said groove or grooves (20) extend into the element in a direction substantially perpendicular to the surface of the substrate (300, 310), giving rise to a higher Q value and a lower serial resistance are also achieved. The inductor may comprise grooved (11, 13, 14) and non-grooved (12) layers.The invention also relates to a method of manufacturing the inductor.