The characteristic features of the luminescence spectra of CdS semiconducto
r nanocrystals, crystallized in hollow channels in a dielectric template, a
re explained in terms of excitonic transitions in semiconductor-insulator q
uantum wires. The excitonic transition energies agree with the values calcu
lated taking into account the effects of size quantization and the "dielect
ric enhancement of excitons" - the large increase in the electron-hole attr
action as a result of the difference between the permittivities of the semi
conductor and insulator. The theoretically computed binding energies of exc
itons in CdS quantum wires with a diameter of 10 nm reach 170 meV. It is sh
own that the excitonic transition energy is constant for a wide range of wi
re diameters. (C) 1999 American Institute of Physics. [S0021-3640(99)01115-
9].