Dr. Vahala has been selected as a Presidential Young Investigator. He is active in fundamental research on the application of nanostructure physics to solid state devices - either to create novel devices or to improve existing devices. In the research program for the National Science Foundation he will pursue studies to include the following: (1) to create entirely new optical material properties by nanometric patterning of substrates in two dimensions (or three dimensions if a multiquantum well substrate is patterned), (2) to use individual nanometer scale structures such as quantum boxes to study scaling limitations in solid state devices. These new properties result from the onset of carrier quantum confinement effects in two or three dimensions (at room temperature onset requires structures on the order of 100-200 angstrom units in size. The research in this grant will have impact on optical communications and signal processing technology. The interactions with industry which are inherent with Presidential Young Investigator grants will have implications for national competitiveness in the opto-electronics field.