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                                                                    EXHIBIT 99.1

                                  PRESS RELEASE

               ATMEL CORPORATION ANNOUNCES OFFERING OF CONVERTIBLE
                               SUBORDINATED NOTES

         SAN JOSE, Calif.--(BUSINESS WIRE)--May 17, 2001--Atmel Corporation
(Nasdaq:ATML - news) today announced that it intends, subject to market and
other conditions, to raise approximately $200 million (excluding proceeds of the
over-allotment option, if any) through an offering of zero coupon convertible
subordinated notes to qualified institutional investors. The company stated that
it expects to use the net proceeds of the offering for general corporate
purposes as well as capital expenditures, such as equipment for .13 micron and
copper manufacturing processes. No other details were provided.

This press release does not constitute an offer to sell or the solicitation of
an offer to buy the securities. Any offers of the securities will be made by
means of a private offering memorandum. The securities to be offered will not be
registered under the Securities Act of 1933, as amended, or applicable state
securities laws, and may not be offered or sold in the United States absent
registration under the Securities Act and applicable state securities laws or
available exemptions from such registration requirements.

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Contact:

     Atmel Corporation, San Jose
     Donald Colvin, 408/436-4360