Chip maker Microchip Technology Inc. said Tuesday it is no longer interested in buying Atmel Corp., another chip maker, and is withdrawing a slate of directors it had nominated to its board.
Microchip said the global economy, along with the chip industry, has "deteriorated significantly" since it first made an offer of $5 per share in October.
"In light of the economic uncertainty and the lack of visibility that continues to exist with respect to Atmel's business, Microchip is no longer able to put a value on Atmel," said Steve Sanghi, president, chief executive and chairman of Microchip, in a statement.
Phoenix based ON Semiconductor Corp. withdrew from a joint proposal with Microchip to buy Atmel in November. At the time, Microchip took back its offer as well — though the company said it planned to "evaluate its potential alternatives for pursuing a transaction without ON."
Shares of Microchip fell 8 cents to $19.36 in after-hours trading. The stock had closed down $1.16, or 5.6 percent, at $19.44 in the regular session.
Shares of Atmel had closed down 21 cents, or 5.4 percent, at $3.69 in the regular session. In after-hours trading, the stock lost another 5 cents to $3.64.