PHOENIX (AP) -- Chip maker ON Semiconductor Corp. said Tuesday it is withdrawing from its joint proposal with Microchip Technology Inc. to buy Atmel Corp.
As a result, Microchip took back its offer as well -- though the company said it plans to "evaluate its potential alternatives for pursuing a transaction without ON."
Microchip and ON had made an unsolicited bid to buy San Jose, Calif.-based Atmel last month, offering $5 per share in cash, or $2.3 billion.
Atmel's board rejected the deal saying the price undervalued the company.
ON's president and chief executive, Keith Jackson, cited the "unforeseen deterioration in the semiconductor market" as well as the financial turmoil as reasons for the withdrawal.