How localized electrons interact with delocalized electrons is a centr
al question to many problems in sold-state physics(1-3). The simplest
manifestation of this situation is the Kondo effect, which occurs when
an impurity atom with an unpaired electron is placed in a metal(2), A
t low temperatures a spin singlet state is formed between the unpaired
localized electron and delocalized electrons at the Fermi energy, The
ories predict(4-7) that a Kondo singlet should form in a single-electr
on transistor (SET), which contains a confined 'droplet' of electrons
coupled by quantum-mechanical tunnelling to the delocalized electrons
in the transistor's leads, If this is so, a SET could provide a means
of investigating aspects of the Kondo effect under controlled circumst
ances that are not accessible in conventional systems: the number of e
lectrons can be changed from odd to even, the difference in energy bet
ween the localized state and the Fermi level can be tuned, the couplin
g to the leads can be adjusted, voltage differences can be applied to
reveal non-equilibrium Kondo phenomena: and a single localized state c
an be studied rather than a statistical distribution. But for SETs fab
ricated previously, the binding energy of the spin singlet has been to
o small to observe Kondo phenomena, Ralph and Buhrman(8) have observed
the Kondo singlet at a single accidental impurity in a metal point co
ntact, but with only two electrodes and without control over the struc
ture they were not able to observe all of the features predicted, Here
we report measurements on SETs smaller than those made previously, wh
ich exhibit all of the predicted aspects of the Kondo effect in such a
system.