The Chinese American physicist, who in 1957 became the second-youngest scientist to receive a Nobel Prize, died on Sunday at his home in San Francisco.
Three scientists were honored for their work with the tiny nanoparticles that allow for very bright colors. They are used in many electronics, like LED displays.
The scientists look at electrons in atoms during the tiniest of split seconds, giving "humanity new tools for exploring the world of electrons," according to the Royal Swedish Academy of Sciences.
Swedish lawmakers had said they would boycott this year's Nobel Prize ceremonies in Stockholm after the foundation initially invited representatives of the three countries to attend.
This year's Nobel Prize in chemistry has been awarded in equal parts to Carolyn R. Bertozzi, Morten Meldal and K. Barry Sharpless for developing way of "snapping molecules together."
Stanford's Paul Milgrom and Robert Wilson are honored for their "inventions of new auction formats." Auctions are now used to price Internet ads, wholesale electricity and fishing permits.
The scientists' work led to a test to protect blood transfusion recipients from hepatitis C and drugs to treat the infection that have saved millions of lives, according to the Nobel Assembly.
