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The objective of this work is to synthesize low-permeability and low-core-loss material for magnetic components used in switch-mode power supplies (SMPS). We depict the process for producing nanocrystalline FeSiBCuNb flake composites (NFC). Permeability from 20 to 60 can be achieved by controlling both particle size and compacting pressure. NFC composites are magnetically superior to the competing Fe and Ni-Fe composites. For guidance, at 500 kHz, core loss in NFC is two and ten times lower, respectively, than in Ni-Fe and Fe composites.