Atomic layer epitaxy (ALE) is a surface controlled, self-limiting method for depositing thin films from gaseous precursors. In this paper the basic principle of ALE and its potentials for nanotechnology are introduced. From the point of view of nanotechnology the most important benefits of ALE are excellent conformality and easily realized subnanometre level accuracy in controlling film thicknesses, which are discussed in more detail with selected examples from thin-film technology. Studies on

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... LE preparation of laterally confined structures are also reviewed. The paper concludes with an outlook discussing the capabilities and challenges of using ALE in nanotechnology in depositing materials with one or several dimensions confined to the nanometre level.