Exhibit 99.1

                       Semtech Resolves Customer Dispute

    CAMARILLO, Calif.--(BUSINESS WIRE)--March 28, 2003--Semtech
Corporation (Nasdaq: SMTC) announced that today it resolved the
customer dispute reported in an August 27, 2002 press release. The
customer dispute concerned whether a Semtech integrated circuit caused
failures in two models of the customer's products. Last August, the
customer indicated that it had suffered damages in the range of $42
million to $115 million.
    Under the terms of the confidential settlement, Semtech will pay
the customer $12 million in cash in two equal annual installments,
plus rebates on certain products purchased by the customer over the
next two years. The rebates, which can be up to 10 percent, are
dependent upon the amount of eligible Semtech products the customer
purchases. The Company is vigorously pursuing insurance coverage for
the full value of the settlement, although it is too early to estimate
the size of any eventual insurance settlement or to give a tentative
date for when an insurance settlement might be reached.
    In accordance with accounting principles generally accepted in the
United States, the expense for the cash portion of the settlement, net
of tax, will be reflected in the Company's income statement for the
fiscal year ended January 26, 2003, resulting in a charge of 10 cents
per diluted share for that period. Rebates will be recorded as they
are made and are not expected to materially affect the Company's
previously announced guidance for the first quarter of fiscal year
2004. Any insurance settlement will be reported in the financial
statements for the period in which the recovery occurs.

    About Semtech

    Semtech Corporation is a leading supplier of analog and
mixed-signal semiconductors used in a wide range of computer,
industrial and communication applications. Semtech has been publicly
traded since 1967 and is listed on the Nasdaq National Market under
the symbol SMTC.

    Safe Harbor Provision

    Statements contained in this release that are not historical facts
are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements,
including expectations regarding the outcome of customer disputes,
involve risks and uncertainties that could cause actual results to
differ materially from those projected. There are risks and
uncertainties inherent in relations with customers and associated with
their businesses. Other factors that may cause actual results to
differ from the forward-looking statements contained in this press
release and that may affect the Company's prospects in general are
described in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no obligation to update or revise
forward-looking statements to reflect subsequent events or changed
assumptions or circumstances.

    CONTACT: Semtech Corporation
             John Baumann, 805/480-2010 (Investor Relations)