Microchip Technology

(MCHP) - Get Report

and

ON Semiconductor

(ONNN)

have proposed to acquire

Atmel

(ATML)

for $5 a share in cash.

The proposal, which is being led by Microchip, is a premium of 52% to Atmel's closing price of $3.28 on Wednesday. The deal values Atmel at $2.3 billion.

When approached by Microchip last month, Atmel, a chipmaker based in San Jose, Calif., refused to engage in talks about a potential transaction, Microchip said in a statement Thursday.