Atmel

Atmel Corporation
Company type	Public
Industry	Semiconductor
Founded	1984
Founder	George Perlegos
Defunct	2016
Fate	Acquired by Microchip Technology
Headquarters	San Jose, California, United States
Area served	Worldwide
Products	Microcontrollers, RF components, EEPROM, flash memory, security ICs, touch sensors and controllers, ASICs, ASSPs
Parent	Microchip Technology (since 2016)

Atmel Corporation was a semiconductor company that became part of Microchip Technology in 2016. Established in 1984, Atmel concentrated on embedded systems with a strong emphasis on microcontrollers. Its range of products encompassed microcontrollers (including 8-bit AVR, 32-bit AVR, 32-bit ARM-based devices, automotive-grade units, and 8-bit Intel 8051 derivatives), radio-frequency (RF) components such as Wi-Fi, EEPROM, and flash memory, security integrated circuits, touch sensors and controllers, alongside customized application-specific solutions. Atmel provided standard offerings as well as application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs) tailored to client specifications.

The company served diverse sectors including consumer electronics, communications, computer networking, industrial automation, healthcare, automotive, aerospace, and defense markets. Its primary focus remained on microcontroller and touch system technologies designed for embedded applications.

Based in San Jose, California, Atmel operated globally with facilities across Norway, India, China, Taiwan, France, Greece, Germany, the United Kingdom, and Egypt. While manufacturing was mainly outsourced to vendor fabs, Atmel owned a production site in Colorado Springs, Colorado dedicated to fabricating its XSense flexible touch sensor technology.

In a transaction valued at roughly $3.6 billion during 2016, Microchip Technology acquired Atmel. This deal was facilitated by financial advisors JPMorgan Chase and Qatalyst Partners.

Establishment and Growth in the 1980s

Founded in 1984 by George Perlegos, Atmel's name derived from "advanced technology for memory and logic." Perlegos, previously part of Intel’s memory division and co-founder of Seeq Technology, launched Atmel as a fabless enterprise with an initial investment of $30,000. Wafer fabrication was outsourced to companies like Sanyo and General Instrument. Early Atmel memory solutions featured lower power consumption compared to rivals, attracting major clients such as Motorola, Nokia, and Ericsson. In 1987, Intel filed a patent infringement lawsuit against Atmel; rather than litigate, Atmel redesigned its products employing alternative intellectual property that enhanced both performance and energy efficiency. Subsequently, Atmel entered the flash memory sector by obtaining $60 million in venture capital to acquire a Honeywell fabrication plant in Colorado Springs in 1989 and invested an additional $30 million into manufacturing technologies.

Expansion through the 1990s

In 1991, Atmel broadened its Colorado operations following the acquisition of FPGA manufacturer Concurrent Logic and completed an initial public offering that raised over $65 million. By 1994, the company ventured into microprocessors by launching a flash-memory microcontroller based on the Intel 8051 architecture capable of executing instructions every clock cycle instead of twelve. That same year saw Atmel acquire the EEPROM business from Seeq Technology. In 1995, it secured a license for the ARM architecture and introduced the AT91 series followed by the SAM family featuring ultra-low-power ARM Cortex-M4 variants. The acquisition of European Silicon Structures (ES2) added a fabrication facility located in Rousset, France where Atmel established a new fab named Atmel-ES2.

In 1996, Atmel purchased Digital Research in Electronic Acoustics and Music (DREAM) and formed a design center in Trondheim, Norway to develop the Atmel AVR line—8-bit RISC microcontrollers utilizing Harvard architecture—which became foundational for numerous Arduino open-source hardware platforms. The company further expanded in 1998 by acquiring segments of TEMIC from Vishay Intertechnology, gaining fabs in Germany and Nantes, France.

In September 2000, Atmel acquired a semiconductor fabrication plant located in North Tyneside, England from Siemens for approximately $35 million; this transaction was supported by a £28 million grant from the UK government.

Streamlining

Beginning in 2005, Atmel adopted a "fab-lite" approach, divesting its manufacturing plants to concentrate on design and innovation. The company sold the MHS fabrication facility located in Nantes, France, to Xbybus, and subsequently disposed of its North Tyneside plant (Fab9) in 2007, transferring equipment to Taiwan Semiconductor Manufacturing Company (TSMC). In 2008, Atmel parted with its German fabrication site by selling it to Tejas Semiconductor. By 2010, it had secured approval from the French government to transfer ownership of its French fab to LFoundry GmbH, while retaining control over the design center. Additionally, Atmel divested various non-core segments: the Secure Microcontroller Solutions smart card division was sold to INSIDE Secure; the Digital Research in Electronics, Acoustics and Music (DREAM) division was sold for $2.3 million in 2011; and in 2012, DataFlash serial interface flash memory product lines were transferred to Adesto Technologies.

Acquisitions

While optimizing its manufacturing footprint, CEO Steven Laub actively pursued acquisitions to broaden Atmel’s technological capabilities and market presence. In 2008, Atmel acquired Quantum Research Group Ltd., a provider of capacitive sensing technologies, which led to the introduction in 2012 of the XSense flexible touchscreen series utilizing copper mesh electrodes.

Focusing on the Internet of Things (IoT) sector, Atmel acquired Advanced Digital Design S.A., a company specializing in power line communication technologies, along with Ozmo Devices—a Palo Alto firm developing Wi-Fi Direct solutions—in December 2012. Ozmo Devices was originally established in 2004 by Kateljin Vleugels and Roel Peeters.

In 2012, Atmel reported revenues near $1.4 billion, with microcontrollers accounting for over 60% of sales, and net earnings of $30 million. In March 2013, Atmel expanded its smart metering offerings by acquiring smart metering product lines from IDT Corporation. Further bolstering its wireless technology portfolio, Atmel acquired Newport Media in July 2014, enhancing its expertise in Bluetooth and Wi-Fi solutions.

Acquisition by Microchip Technology

In October 2008, Atmel received an unsolicited acquisition proposal valued at $2.3 billion from Microchip Technology and ON Semiconductor, which was ultimately declined, terminating the hostile bid.

By 2016, Microchip agreed to purchase Atmel for $3.6 billion, with financial advisory services provided by JPMorgan Chase for Microchip and Qatalyst Partners for Atmel. Prior to this agreement, acquisition interest had been expressed by Cypress Semiconductor and Dialog Semiconductor during 2015. The transaction was anticipated to finalize by the conclusion of Q2 2016.

The merger concluded in July 2016 at a value of $3.56 billion, integrating Atmel’s product range into Microchip’s portfolio and broadening its market share within microcontrollers and semiconductor technologies.

The end of Atmel Way

Apple purchased the cul-de-sac that housed Atmel's former headquarters in San Jose. Following city approval, "Atmel Way" was renamed "Orchard Place," reflecting Apple's growing footprint in the locale.

Microcontrollers

Microcontrollers constitute a major segment of Atmel's revenue stream and include the AVR families of 8-bit and 32-bit devices, ARM-based microprocessors and flash microcontrollers, as well as enhanced 8051 architecture products featuring single-cycle instruction execution. These microcontrollers are supported by the complimentary Atmel Studio 7 integrated development environment alongside the Atmel Software Framework.

Wireless / RF

Atmel addresses the Internet of Things (IoT) sector by providing dual-band Wi-Fi chips operating at 2.4 GHz and 5 GHz, acquired through its Ozmo purchase. The company also supplies 2.4 GHz b/g/n Wi-Fi modules, such as WILC1000, WILC3000, and WINC1500, sourced from Newport Media. These modules incorporate complete network controllers supporting TCP/IP stacks and protocols including DHCP, DNS, HTTP, SNTP, and TLS. Its wireless product range features transceivers functioning on regional frequencies of 700/800/900 MHz as well as the global 2.4 GHz band, available either as standalone components or integrated with microcontrollers. The Zigbit module offers FCC-certified wireless connectivity solutions. Furthermore, Atmel manufactures remote control RF devices utilizing license-exempt ISM bands like 5.8 GHz, 2.4 GHz, 868–928 MHz, 433 MHz, and 315 MHz. The wireless division also includes RFID chips designed for tracking and identification purposes alongside a series of IR controllers that support both infrared and RF wireless communications.

Touchscreen

Atmel designs touchscreen controller integrated circuits along with its adaptable XSense touchscreen film technology. The company develops sensor hubs that manage inputs from accelerometers, gyroscopes, inertial measurement units, and magnetometers to provide context-aware capabilities within consumer electronics and embedded systems. These sensor hubs alleviate the processing load on the main CPU, thereby lowering power consumption. Atmel’s portfolio includes straightforward touch controller ICs for buttons, sliders, and wheels commonly used in industrial and consumer applications, supported by a complimentary QTouch software library to streamline integration efforts.

Memory

Memory products remain a core segment for Atmel, encompassing serial and parallel EEPROM along with one-time programmable (OTP) EPROM devices. Its CryptoMemory series delivers secure EEPROM solutions ranging from 1 kbit to 256 kbits in size, aimed at applications requiring robust anti-cloning and anti-counterfeiting protection.

Security

In addition to secure memory offerings, Atmel’s CryptoAuthentication line provides hardware-based symmetric and asymmetric authentication solutions designed for secure access control, communication security, system management, and safeguarding against counterfeit products such as batteries or ink cartridges. The CryptoRF product family enhances security in RFID applications through encryption technologies. Moreover, Atmel supplies a trusted platform module (TPM) that integrates strong RSA-based public key cryptography into a single chip for use in personal computers and embedded processors.

Analog

Atmel manufactures LED driver ICs alongside digital-output temperature sensors. Its power management and analog companion (PMAAC) portfolio combines several discrete integrated circuits frequently utilized in portable or battery-operated devices. Key functionalities include audio codecs, lithium-ion battery charging ICs, and stereo digital-to-analog converters.

Custom

Atmel provides custom-designed integrated circuits tailored to specific client requirements, including field-programmable gate arrays (FPGAs) and application-specific standard products (ASSPs) targeting sectors such as military, aerospace, space exploration, power management, and secure cryptographic memory solutions.

Automotive

Numerous Atmel products are adapted for automotive applications by offering extended temperature ranges and meeting automotive qualification standards. These include components for vehicle access systems, touch control interfaces, radio communication modules, CAN/VAN/LIN bus networking solutions, battery management systems, high-temperature drivers, and serial EEPROMs designed for automotive environments.

Smart energy

Atmel’s smart energy solutions integrate microprocessors with secure, tamper-resistant hardware and power line communication modems. These chips also feature analog front-end components designed for accurate measurement in smart metering systems.

External links

Microchip Technology official website