Atalla was awarded the Stuart Ballantine Medal (now the Benjamin Franklin Medal in physics) at the 1975 Franklin Institute Awards, for his important contributions to silicon semiconductor technology and his invention of the MOSFET. In 2003, Atalla received a Distinguished Alumnus doctorate from Purdue University.
In 2009, he was inducted into the National Inventors Hall of Fame for his important contributions to semiconductor technology as well as data security. He was referred to as one of the "Sultans of Silicon" along with several other semiconductor pioneers.
In 2014, the 1959 invention of the MOSFET was included on the list of IEEE milestones in electronics. In 2015, Atalla was inducted into the IT History Society's IT Honor Roll for his important contributions to information technology.