A proposal from Microchip to acquire Atmel has been deemed a ‘superior proposal’ by Atmel’s board of directors (PDF). This is the first step in the acquisition of a merger between Microchip and Atmel, both leading semiconductor companies that have had a tremendous impact in the electronics industry.
Microchip is a leading manufacturer of microcontrollers, most famously the PIC series of micros that can be found in any and every type of electronic device. Atmel, likewise, also has a large portfolio of microcontrollers and memory devices that are found in every type of electronic device. Engineers, hackers, and electronic hobbyists are frequently sided with Microchip’s PIC line or Atmel’s AVR line of microcontrollers. It’s the closest thing we have to a holy war in electronics.
Last September, Dialog
acquired announced plans to acquire Atmel for $4.6 Billion. Today’s news of a possible acquisition of Atmel by Microchip follows even larger mergers such as NXP and Freescale, Intel and Altera, Avago and Broadcom, On Semiconductor and Fairchild, and TI and Maxim. The semiconductor industry has cash on hand and costs to cut, these mergers and acquisitions are the natural order of things.
While the deal is not done, the money is on the table, and Atmel’s board is apparently interested.