Cypress Semiconductor withdrew its interest in acquiring Atmel, a US designer and manufacturer of microcontrollers, a move that would have disrupted a rival $4.6 billion agreement already struck with Dialog.
“Cypress previously submitted an offer to the Board of Directors of Atmel to acquire Atmel. That offer expired and Cypress has withdrawn its interest in an acquisition of Atmel,” the company said in a statement.
“Cypress regularly evaluates acquisition opportunities to complement its existing business, and maintains a disciplined approach to ensure that it continues to deliver long-term value to its shareholders,” the statement added.
Earlier this week it was reported that Cypress would make an offer to Atmel that would top the existing bid from Dialog.
The Dialog-Atmel transaction is expected to close in the first quarter of 2016 subject to approval from regulatory authorities and shareholders.
This is the second attempt by Cypress to acquire a chipmaker.
Last summer, it tried to snap up Integrated Silicon Solution, but lost out to Uphill Investment which bought the company for over $700 million.
Cypress makes flash memory chips and microcontrollers and is looking to boost its Internet of Things portfolio.
Cypress’ attempt to buy Atmel is part of a wider M&A trend in the semiconductor industry, which is trying to keep up with demand for cheaper chips and clients looking to reduce their number of suppliers.