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Trench-type narrow InGaAs quantum wires (QWRs) with a cross-sectional depth of 8 nm and a width of 25 nm have been successfully fabricated by hydrogen-assisted molecular beam epitaxy. Optical properties of the QWRs are improved by atomic-hydrogen irradiation as observed by photoluminescence measurement. The trench-type QWR-FET has a pronounced negative differential conductance with a low onset voltage and a high peak-to-valley current ratio. We also study the quantum-interference characteristics of the trench-type QWR-FET, and find very different behavior to that typically exhibited by disordered wires. This Aharonov–Bohm effect points to an interference process in which the one-dimensional subbands of the wire themselves constitute well-resolved paths for electron interference. © 2002 American Vacuum Society.