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 楼主| martin 发表于 2008-10-3 21:08 | 显示全部楼层 |阅读模式
Microchip,&nbsp;ON&nbsp;Offer&nbsp;to&nbsp;Acquire&nbsp;Atmel&nbsp;for&nbsp;$2.3&nbsp;Billion&nbsp;(Update4)&nbsp;<br /><br />By&nbsp;Katie&nbsp;Hoffmann<br /><br />Oct.&nbsp;2&nbsp;(Bloomberg)&nbsp;--&nbsp;Microchip&nbsp;Technology&nbsp;Inc.&nbsp;and&nbsp;ON&nbsp;Semiconductor&nbsp;Corp.,&nbsp;makers&nbsp;of&nbsp;chips&nbsp;that&nbsp;run&nbsp;electronics&nbsp;and&nbsp;household&nbsp;appliances,&nbsp;made&nbsp;an&nbsp;unsolicited&nbsp;offer&nbsp;to&nbsp;buy&nbsp;Atmel&nbsp;Corp.&nbsp;for&nbsp;$2.3&nbsp;billion&nbsp;and&nbsp;split&nbsp;the&nbsp;assets.&nbsp;<br /><br />The&nbsp;companies&nbsp;would&nbsp;pay&nbsp;$5&nbsp;a&nbsp;share,&nbsp;52&nbsp;percent&nbsp;more&nbsp;than&nbsp;Atmel's&nbsp;closing&nbsp;price&nbsp;yesterday.&nbsp;Microchip&nbsp;and&nbsp;ON&nbsp;made&nbsp;the&nbsp;proposal&nbsp;public&nbsp;by&nbsp;releasing&nbsp;a&nbsp;letter&nbsp;to&nbsp;the&nbsp;board&nbsp;in&nbsp;a&nbsp;statement&nbsp;today,&nbsp;saying&nbsp;Atmel&nbsp;directors&nbsp;refused&nbsp;to&nbsp;negotiate.&nbsp;Atmel&nbsp;surged&nbsp;34&nbsp;percent&nbsp;today&nbsp;in&nbsp;Nasdaq&nbsp;trading.&nbsp;<br /><br />Atmel&nbsp;had&nbsp;lost&nbsp;more&nbsp;than&nbsp;a&nbsp;third&nbsp;of&nbsp;its&nbsp;value&nbsp;in&nbsp;the&nbsp;past&nbsp;year&nbsp;before&nbsp;today,&nbsp;and&nbsp;plans&nbsp;for&nbsp;a&nbsp;turnaround&nbsp;haven't&nbsp;produced&nbsp;results,&nbsp;Microchip&nbsp;and&nbsp;ON&nbsp;said.&nbsp;The&nbsp;``rapidly&nbsp;deteriorating''&nbsp;economy&nbsp;will&nbsp;make&nbsp;those&nbsp;efforts&nbsp;even&nbsp;more&nbsp;difficult,&nbsp;they&nbsp;said.&nbsp;Microchip&nbsp;would&nbsp;acquire&nbsp;most&nbsp;of&nbsp;Atmel's&nbsp;businesses,&nbsp;with&nbsp;ON&nbsp;buying&nbsp;the&nbsp;memory&nbsp;and&nbsp;automotive&nbsp;units,&nbsp;the&nbsp;companies&nbsp;said.&nbsp;<br /><br />``We&nbsp;are&nbsp;confident&nbsp;that,&nbsp;given&nbsp;the&nbsp;opportunity,&nbsp;Atmel's&nbsp;stockholders&nbsp;and&nbsp;your&nbsp;other&nbsp;stakeholders&nbsp;will&nbsp;enthusiastically&nbsp;support&nbsp;this&nbsp;offer,''&nbsp;Microchip&nbsp;Chief&nbsp;Executive&nbsp;Officer&nbsp;Steven&nbsp;Sanghi&nbsp;and&nbsp;ON&nbsp;CEO&nbsp;Keith&nbsp;Jackson&nbsp;said&nbsp;in&nbsp;the&nbsp;letter.&nbsp;<br /><br />Atmel,&nbsp;whose&nbsp;products&nbsp;include&nbsp;chips&nbsp;for&nbsp;video-game&nbsp;controllers,&nbsp;said&nbsp;its&nbsp;board&nbsp;will&nbsp;review&nbsp;the&nbsp;proposal.&nbsp;The&nbsp;company&nbsp;is&nbsp;based&nbsp;in&nbsp;San&nbsp;Jose,&nbsp;California.&nbsp;<br /><br />Microchip's&nbsp;Sanghi&nbsp;met&nbsp;Atmel&nbsp;CEO&nbsp;Steve&nbsp;Laub&nbsp;on&nbsp;Sept.&nbsp;5&nbsp;to&nbsp;discuss&nbsp;a&nbsp;potential&nbsp;acquisition,&nbsp;and&nbsp;Atmel's&nbsp;board&nbsp;then&nbsp;appeared&nbsp;to&nbsp;be&nbsp;``unwilling&nbsp;to&nbsp;consider&nbsp;a&nbsp;transaction&nbsp;at&nbsp;this&nbsp;time&nbsp;under&nbsp;any&nbsp;circumstances,''&nbsp;according&nbsp;to&nbsp;the&nbsp;letter,&nbsp;dated&nbsp;yesterday.&nbsp;<br /><br />`Crown&nbsp;Jewel'&nbsp;<br /><br />Atmel,&nbsp;founded&nbsp;in&nbsp;1984&nbsp;by&nbsp;George&nbsp;Perlegos,&nbsp;manufactures&nbsp;and&nbsp;markets&nbsp;semiconductors&nbsp;to&nbsp;customers&nbsp;such&nbsp;as&nbsp;Motorola&nbsp;Inc.&nbsp;and&nbsp;Hewlett-Packard&nbsp;Co.&nbsp;Its&nbsp;``crown&nbsp;jewel''&nbsp;is&nbsp;the&nbsp;microcontroller&nbsp;unit,&nbsp;Friedman&nbsp;Billings&nbsp;Ramsey&nbsp;&&nbsp;Co.&nbsp;analyst&nbsp;Craig&nbsp;Berger&nbsp;said&nbsp;today&nbsp;in&nbsp;a&nbsp;note&nbsp;to&nbsp;clients.&nbsp;Demand&nbsp;is&nbsp;increasing&nbsp;for&nbsp;microcontrollers,&nbsp;which&nbsp;connect&nbsp;electronics&nbsp;with&nbsp;the&nbsp;real&nbsp;world,&nbsp;such&nbsp;as&nbsp;controlling&nbsp;door&nbsp;locks&nbsp;and&nbsp;wipers&nbsp;in&nbsp;cars.&nbsp;<br /><br />Atmel&nbsp;gained&nbsp;$1.12&nbsp;to&nbsp;$4.40&nbsp;at&nbsp;4:02&nbsp;p.m.&nbsp;New&nbsp;York&nbsp;time&nbsp;on&nbsp;the&nbsp;Nasdaq&nbsp;Stock&nbsp;Market,&nbsp;its&nbsp;biggest&nbsp;increase&nbsp;since&nbsp;November&nbsp;2002.&nbsp;Microchip,&nbsp;down&nbsp;26&nbsp;percent&nbsp;in&nbsp;the&nbsp;past&nbsp;year,&nbsp;fell&nbsp;$1.43&nbsp;to&nbsp;$27.39.&nbsp;Phoenix-based&nbsp;ON&nbsp;slipped&nbsp;96&nbsp;cents,&nbsp;or&nbsp;15&nbsp;percent,&nbsp;to&nbsp;$5.58&nbsp;and&nbsp;has&nbsp;declined&nbsp;55&nbsp;percent&nbsp;in&nbsp;the&nbsp;past&nbsp;12&nbsp;months.&nbsp;<br /><br />Under&nbsp;the&nbsp;deal,&nbsp;Chandler,&nbsp;Arizona-based&nbsp;Microchip&nbsp;would&nbsp;buy&nbsp;Atmel,&nbsp;financed&nbsp;with&nbsp;cash&nbsp;from&nbsp;Microchip&nbsp;and&nbsp;proceeds&nbsp;from&nbsp;the&nbsp;sale&nbsp;of&nbsp;units&nbsp;to&nbsp;ON,&nbsp;the&nbsp;companies&nbsp;said.&nbsp;ON&nbsp;would&nbsp;use&nbsp;its&nbsp;existing&nbsp;cash,&nbsp;a&nbsp;credit&nbsp;facility&nbsp;and&nbsp;additional&nbsp;financing.&nbsp;<br /><br />After&nbsp;posting&nbsp;annual&nbsp;losses&nbsp;from&nbsp;2001&nbsp;through&nbsp;2005,&nbsp;Atmel&nbsp;planned&nbsp;to&nbsp;focus&nbsp;on&nbsp;the&nbsp;profitable&nbsp;microcontroller&nbsp;unit.&nbsp;Still,&nbsp;Microchip&nbsp;and&nbsp;ON&nbsp;said&nbsp;``underperforming''&nbsp;units&nbsp;such&nbsp;as&nbsp;the&nbsp;auto&nbsp;business&nbsp;still&nbsp;account&nbsp;for&nbsp;a&nbsp;significant&nbsp;portion&nbsp;of&nbsp;sales.&nbsp;Atmel's&nbsp;revenue&nbsp;declined&nbsp;1.9&nbsp;percent&nbsp;to&nbsp;$1.64&nbsp;million&nbsp;last&nbsp;year.&nbsp;<br /><br />Product&nbsp;Development&nbsp;<br /><br />Microchip&nbsp;and&nbsp;ON&nbsp;will&nbsp;be&nbsp;able&nbsp;to&nbsp;accelerate&nbsp;product&nbsp;development&nbsp;after&nbsp;the&nbsp;purchase,&nbsp;Sanghi&nbsp;said&nbsp;today&nbsp;on&nbsp;a&nbsp;conference&nbsp;call.&nbsp;The&nbsp;acquisition&nbsp;will&nbsp;give&nbsp;Microchip&nbsp;a&nbsp;35&nbsp;percent&nbsp;share&nbsp;in&nbsp;the&nbsp;microcontroller&nbsp;market,&nbsp;said&nbsp;Uche&nbsp;Orji,&nbsp;an&nbsp;analyst&nbsp;at&nbsp;UBS&nbsp;AG&nbsp;in&nbsp;New&nbsp;York.&nbsp;<br /><br />``Microchip&nbsp;is&nbsp;very,&nbsp;very&nbsp;excellent&nbsp;in&nbsp;execution,&nbsp;so&nbsp;they'll&nbsp;be&nbsp;able&nbsp;to&nbsp;squeeze&nbsp;value&nbsp;out&nbsp;of&nbsp;this,''&nbsp;Orji&nbsp;said.&nbsp;``No&nbsp;doubt&nbsp;in&nbsp;my&nbsp;mind&nbsp;they&nbsp;can&nbsp;do&nbsp;that.''&nbsp;<br /><br />Microchip&nbsp;and&nbsp;ON&nbsp;said&nbsp;they&nbsp;intend&nbsp;to&nbsp;dispose&nbsp;of&nbsp;Atmel's&nbsp;ASIC&nbsp;business,&nbsp;which&nbsp;makes&nbsp;specific-purpose&nbsp;chips&nbsp;used&nbsp;in&nbsp;mobile&nbsp;phones&nbsp;and&nbsp;national-ID&nbsp;cards,&nbsp;and&nbsp;that&nbsp;there&nbsp;is&nbsp;a&nbsp;third&nbsp;party&nbsp;interested&nbsp;in&nbsp;acquiring&nbsp;it.&nbsp;Demand&nbsp;for&nbsp;ASIC&nbsp;chips&nbsp;is&nbsp;declining&nbsp;as&nbsp;companies&nbsp;switch&nbsp;to&nbsp;more&nbsp;general-purpose&nbsp;semiconductors.&nbsp;<br /><br />The&nbsp;two&nbsp;companies&nbsp;said&nbsp;they&nbsp;would&nbsp;consider&nbsp;including&nbsp;stock&nbsp;as&nbsp;a&nbsp;portion&nbsp;of&nbsp;the&nbsp;purchase&nbsp;price,&nbsp;though&nbsp;they&nbsp;prefer&nbsp;paying&nbsp;cash.&nbsp;They&nbsp;said&nbsp;the&nbsp;acquisition&nbsp;should&nbsp;add&nbsp;to&nbsp;adjusted&nbsp;earnings&nbsp;per&nbsp;share&nbsp;for&nbsp;both&nbsp;companies&nbsp;in&nbsp;the&nbsp;first&nbsp;full&nbsp;year.&nbsp;<br /><br />The&nbsp;deal&nbsp;could&nbsp;be&nbsp;signed&nbsp;in&nbsp;December&nbsp;and&nbsp;close&nbsp;in&nbsp;the&nbsp;March&nbsp;quarter&nbsp;if&nbsp;Atmel's&nbsp;board&nbsp;cooperates,&nbsp;Sanghi&nbsp;said.&nbsp;<br /><br />``We're&nbsp;hoping&nbsp;this&nbsp;becomes&nbsp;a&nbsp;friendly&nbsp;transaction&nbsp;very&nbsp;quickly,''&nbsp;he&nbsp;said.&nbsp;<br /><br />Microchip&nbsp;and&nbsp;ON&nbsp;have&nbsp;hired&nbsp;JPMorgan&nbsp;Chase&nbsp;&&nbsp;Co.&nbsp;as&nbsp;a&nbsp;financial&nbsp;adviser&nbsp;and&nbsp;Simpson&nbsp;Thacher&nbsp;&&nbsp;Bartlett&nbsp;and&nbsp;DLA&nbsp;Piper&nbsp;as&nbsp;legal&nbsp;advisers.&nbsp;Morgan&nbsp;Stanley&nbsp;and&nbsp;Credit&nbsp;Suisse&nbsp;Group&nbsp;AG&nbsp;are&nbsp;advising&nbsp;Atmel,&nbsp;and&nbsp;Wachtell,&nbsp;Lipton&nbsp;Rosen&nbsp;&&nbsp;Katz&nbsp;is&nbsp;legal&nbsp;counsel.&nbsp;<br /><br />To&nbsp;contact&nbsp;the&nbsp;reporter&nbsp;on&nbsp;this&nbsp;story:&nbsp;Katie&nbsp;Hoffmann&nbsp;in&nbsp;New&nbsp;York&nbsp;at&nbsp;khoffmann4@bloomberg.net&nbsp;<br /><br />Last&nbsp;Updated:&nbsp;October&nbsp;2,&nbsp;2008&nbsp;16:30&nbsp;EDT&nbsp;
 楼主| martin 发表于 2008-10-3 21:19 | 显示全部楼层

MICROCHIP AND ON PROPOSE TO ACQUIRE ATMEL

MICROCHIP&nbsp;TECHNOLOGY&nbsp;AND&nbsp;ON&nbsp;SEMICONDUCTOR&nbsp;PROPOSE&nbsp;TO&nbsp;ACQUIRE&nbsp;ATMEL&nbsp;FOR&nbsp;$5.00&nbsp;PER&nbsp;SHARE&nbsp;IN&nbsp;CASH&nbsp;<br /><br />Provides&nbsp;Premium&nbsp;of&nbsp;52.4%&nbsp;and&nbsp;Values&nbsp;Atmel&nbsp;at&nbsp;$2.3&nbsp;Billion<br /><br />Chandler&nbsp;and&nbsp;Phoenix,&nbsp;Arizona,&nbsp;October&nbsp;2,&nbsp;2008&nbsp;–&nbsp;Microchip&nbsp;Technology&nbsp;Incorporated&nbsp;(NASDAQ:&nbsp;MCHP)&nbsp;and&nbsp;ON&nbsp;Semiconductor&nbsp;Corporation&nbsp;(NASDAQ:&nbsp;ONNN)&nbsp;today&nbsp;announced&nbsp;that&nbsp;they&nbsp;have&nbsp;sent&nbsp;a&nbsp;proposal&nbsp;to&nbsp;the&nbsp;Board&nbsp;of&nbsp;Directors&nbsp;of&nbsp;Atmel&nbsp;Corporation&nbsp;(NASDAQ:&nbsp;ATML)&nbsp;to&nbsp;acquire&nbsp;Atmel&nbsp;for&nbsp;$5.00&nbsp;per&nbsp;share&nbsp;in&nbsp;cash.&nbsp;The&nbsp;proposal,&nbsp;which&nbsp;is&nbsp;being&nbsp;led&nbsp;by&nbsp;Microchip,&nbsp;provides&nbsp;a&nbsp;premium&nbsp;of&nbsp;52.4%&nbsp;to&nbsp;Atmel’s&nbsp;closing&nbsp;price&nbsp;of&nbsp;$3.28&nbsp;on&nbsp;October&nbsp;1,&nbsp;2008,&nbsp;and&nbsp;values&nbsp;Atmel&nbsp;at&nbsp;$2.3&nbsp;billion.<br /><br />The&nbsp;text&nbsp;of&nbsp;the&nbsp;letter&nbsp;that&nbsp;was&nbsp;sent&nbsp;to&nbsp;Atmel’s&nbsp;Board&nbsp;of&nbsp;Directors&nbsp;last&nbsp;night&nbsp;follows:<br /><br /><br />October&nbsp;1,&nbsp;2008<br /><br />Board&nbsp;of&nbsp;Directors<br /><br />Atmel&nbsp;Corporation<br /><br />2325&nbsp;Orchard&nbsp;Parkway<br /><br />San&nbsp;Jose,&nbsp;CA&nbsp;95131<br /><br />Attention:&nbsp;Steven&nbsp;Laub,&nbsp;President&nbsp;and&nbsp;Chief&nbsp;Executive&nbsp;Officer<br /><br />Dear&nbsp;Steven:<br /><br />We&nbsp;appreciate&nbsp;your&nbsp;having&nbsp;taken&nbsp;the&nbsp;time&nbsp;to&nbsp;meet&nbsp;with&nbsp;Steve&nbsp;Sanghi&nbsp;on&nbsp;September&nbsp;5th&nbsp;to&nbsp;discuss&nbsp;Microchip’s&nbsp;potential&nbsp;acquisition&nbsp;of&nbsp;Atmel.&nbsp;However,&nbsp;we&nbsp;were&nbsp;deeply&nbsp;disappointed&nbsp;to&nbsp;learn&nbsp;subsequently&nbsp;that&nbsp;the&nbsp;Atmel&nbsp;Board&nbsp;of&nbsp;Directors&nbsp;appears&nbsp;unwilling&nbsp;to&nbsp;consider&nbsp;a&nbsp;transaction&nbsp;at&nbsp;this&nbsp;time&nbsp;under&nbsp;any&nbsp;circumstances.&nbsp;Given&nbsp;your&nbsp;apparent&nbsp;refusal&nbsp;to&nbsp;engage&nbsp;in&nbsp;transaction&nbsp;discussions,&nbsp;we&nbsp;are&nbsp;writing&nbsp;to&nbsp;you&nbsp;to&nbsp;formally&nbsp;propose&nbsp;an&nbsp;acquisition&nbsp;of&nbsp;Atmel&nbsp;for&nbsp;$5.00&nbsp;per&nbsp;share&nbsp;in&nbsp;cash.&nbsp;The&nbsp;acquisition&nbsp;would&nbsp;be&nbsp;led&nbsp;by&nbsp;Microchip&nbsp;and&nbsp;financed&nbsp;in&nbsp;part&nbsp;by&nbsp;the&nbsp;sale&nbsp;of&nbsp;Atmel’s&nbsp;nonvolatile&nbsp;memory&nbsp;and&nbsp;RF&nbsp;and&nbsp;automotive&nbsp;businesses&nbsp;to&nbsp;ON&nbsp;Semiconductor.<br /><br />Our&nbsp;Offer&nbsp;Would&nbsp;Provide&nbsp;A&nbsp;Significant&nbsp;and&nbsp;Immediate&nbsp;Premium&nbsp;for&nbsp;Atmel&nbsp;Stockholders<br /><br />We&nbsp;believe&nbsp;that&nbsp;this&nbsp;offer,&nbsp;which&nbsp;represents&nbsp;a&nbsp;52.4%&nbsp;premium&nbsp;over&nbsp;Atmel’s&nbsp;closing&nbsp;share&nbsp;price&nbsp;on&nbsp;October&nbsp;1,&nbsp;2008,&nbsp;is&nbsp;simply&nbsp;too&nbsp;compelling&nbsp;not&nbsp;to&nbsp;bring&nbsp;to&nbsp;your&nbsp;shareholders.&nbsp;Although&nbsp;we&nbsp;have&nbsp;a&nbsp;preference&nbsp;to&nbsp;effect&nbsp;a&nbsp;cash&nbsp;transaction,&nbsp;should&nbsp;you&nbsp;feel&nbsp;your&nbsp;stockholders&nbsp;would&nbsp;prefer&nbsp;a&nbsp;form&nbsp;of&nbsp;consideration&nbsp;other&nbsp;than&nbsp;cash,&nbsp;we&nbsp;would&nbsp;consider&nbsp;including&nbsp;common&nbsp;stock&nbsp;as&nbsp;a&nbsp;portion&nbsp;of&nbsp;the&nbsp;consideration.<br /><br />This&nbsp;offer&nbsp;is&nbsp;full&nbsp;and&nbsp;fair&nbsp;and&nbsp;would&nbsp;deliver&nbsp;to&nbsp;your&nbsp;stockholders&nbsp;CY2008&nbsp;EBIT&nbsp;and&nbsp;CY2008&nbsp;P/E&nbsp;multiples&nbsp;of&nbsp;19x&nbsp;and&nbsp;28x,&nbsp;respectively,&nbsp;based&nbsp;on&nbsp;Wall&nbsp;Street&nbsp;estimates&nbsp;(multiples&nbsp;exclude&nbsp;approximately&nbsp;$60&nbsp;million&nbsp;of&nbsp;restructuring&nbsp;charges&nbsp;and&nbsp;approximately&nbsp;$25&nbsp;million&nbsp;of&nbsp;stock&nbsp;based&nbsp;compensation).&nbsp;It&nbsp;offers&nbsp;your&nbsp;stockholders&nbsp;an&nbsp;extremely&nbsp;attractive&nbsp;return&nbsp;based&nbsp;on&nbsp;these&nbsp;and&nbsp;other&nbsp;relevant&nbsp;financial&nbsp;metrics,&nbsp;especially&nbsp;when&nbsp;weighed&nbsp;against&nbsp;the&nbsp;challenges&nbsp;in&nbsp;creating&nbsp;shareholder&nbsp;value&nbsp;that&nbsp;Atmel&nbsp;will&nbsp;face&nbsp;if&nbsp;it&nbsp;continues&nbsp;on&nbsp;a&nbsp;standalone&nbsp;basis.&nbsp;The&nbsp;transformation&nbsp;plan&nbsp;that&nbsp;Atmel&nbsp;adopted&nbsp;a&nbsp;year&nbsp;and&nbsp;a&nbsp;half&nbsp;ago&nbsp;in&nbsp;the&nbsp;face&nbsp;of&nbsp;a&nbsp;proxy&nbsp;contest&nbsp;brought&nbsp;by&nbsp;its&nbsp;founder&nbsp;is&nbsp;incomplete&nbsp;and&nbsp;continues&nbsp;to&nbsp;face&nbsp;significant&nbsp;execution&nbsp;risks&nbsp;and&nbsp;obstacles:<br /><br />Continued&nbsp;Burden&nbsp;of&nbsp;Lagging&nbsp;and&nbsp;Sub-scale&nbsp;Operating&nbsp;Segments&nbsp;–&nbsp;Atmel&nbsp;has&nbsp;reiterated&nbsp;frequently&nbsp;that&nbsp;the&nbsp;core&nbsp;tenant&nbsp;of&nbsp;its&nbsp;transformation&nbsp;plan&nbsp;is&nbsp;refocusing&nbsp;its&nbsp;resources&nbsp;on&nbsp;its&nbsp;microcontroller&nbsp;business;&nbsp;however,&nbsp;Atmel’s&nbsp;underperforming&nbsp;ASIC&nbsp;and&nbsp;Auto&nbsp;businesses&nbsp;today&nbsp;remain&nbsp;very&nbsp;significant&nbsp;within&nbsp;the&nbsp;company’s&nbsp;overall&nbsp;business.&nbsp;These&nbsp;Atmel&nbsp;segments&nbsp;are&nbsp;significantly&nbsp;below&nbsp;the&nbsp;scale&nbsp;that&nbsp;is&nbsp;necessary&nbsp;for&nbsp;success&nbsp;and&nbsp;they&nbsp;will&nbsp;continue&nbsp;to&nbsp;be&nbsp;a&nbsp;heavy&nbsp;anchor&nbsp;on&nbsp;Atmel’s&nbsp;future&nbsp;operating&nbsp;results.&nbsp;<br />Considerable&nbsp;Execution&nbsp;Challenges&nbsp;–&nbsp;Although&nbsp;Atmel&nbsp;has&nbsp;made&nbsp;some&nbsp;progress&nbsp;to&nbsp;date&nbsp;in&nbsp;disposing&nbsp;of&nbsp;unproductive&nbsp;fab&nbsp;assets&nbsp;and&nbsp;achieved&nbsp;modest&nbsp;improvements&nbsp;in&nbsp;operating&nbsp;results&nbsp;under&nbsp;its&nbsp;previously&nbsp;announced&nbsp;plan,&nbsp;the&nbsp;likelihood&nbsp;and&nbsp;timing&nbsp;of&nbsp;successfully&nbsp;executing&nbsp;on&nbsp;the&nbsp;plan&nbsp;is&nbsp;uncertain&nbsp;at&nbsp;best.&nbsp;Disposal&nbsp;of&nbsp;unneeded&nbsp;fabs&nbsp;is&nbsp;only&nbsp;the&nbsp;first&nbsp;part&nbsp;of&nbsp;what&nbsp;has&nbsp;been,&nbsp;and&nbsp;will&nbsp;continue&nbsp;to&nbsp;be,&nbsp;a&nbsp;lengthy&nbsp;and&nbsp;difficult&nbsp;strategic&nbsp;shift&nbsp;for&nbsp;Atmel.&nbsp;For&nbsp;example,&nbsp;even&nbsp;with&nbsp;the&nbsp;changes&nbsp;Atmel&nbsp;has&nbsp;completed&nbsp;to&nbsp;date,&nbsp;the&nbsp;operating&nbsp;margin&nbsp;for&nbsp;its&nbsp;microcontroller&nbsp;business&nbsp;is&nbsp;significantly&nbsp;lagging&nbsp;industry&nbsp;leaders&nbsp;such&nbsp;as&nbsp;Microchip.&nbsp;<br />Deteriorating&nbsp;Macroeconomic&nbsp;Environment&nbsp;–&nbsp;Even&nbsp;in&nbsp;a&nbsp;stable&nbsp;or&nbsp;growing&nbsp;economic&nbsp;environment,&nbsp;successful&nbsp;execution&nbsp;of&nbsp;the&nbsp;company’s&nbsp;announced&nbsp;plan&nbsp;is&nbsp;fraught&nbsp;with&nbsp;uncertainty.&nbsp;Against&nbsp;this&nbsp;background&nbsp;of&nbsp;significant&nbsp;execution&nbsp;risk,&nbsp;however,&nbsp;you&nbsp;confront&nbsp;a&nbsp;rapidly&nbsp;deteriorating&nbsp;U.S.&nbsp;and&nbsp;global&nbsp;macroeconomic&nbsp;environment&nbsp;that&nbsp;will&nbsp;magnify&nbsp;these&nbsp;risks&nbsp;and&nbsp;increase&nbsp;the&nbsp;likelihood&nbsp;of&nbsp;failure.&nbsp;<br />Lagging&nbsp;Stock&nbsp;Price&nbsp;–&nbsp;Even&nbsp;with&nbsp;the&nbsp;changes&nbsp;Atmel&nbsp;has&nbsp;announced&nbsp;in&nbsp;connection&nbsp;with&nbsp;its&nbsp;current&nbsp;business&nbsp;plan&nbsp;and&nbsp;the&nbsp;actions&nbsp;it&nbsp;has&nbsp;taken&nbsp;to&nbsp;date,&nbsp;your&nbsp;stockholders&nbsp;have&nbsp;seen&nbsp;a&nbsp;46%&nbsp;decline&nbsp;in&nbsp;the&nbsp;value&nbsp;of&nbsp;their&nbsp;shares&nbsp;in&nbsp;the&nbsp;last&nbsp;two&nbsp;years.&nbsp;Both&nbsp;the&nbsp;stocks&nbsp;of&nbsp;Microchip&nbsp;and&nbsp;ON&nbsp;Semiconductor,&nbsp;as&nbsp;well&nbsp;as&nbsp;the&nbsp;overall&nbsp;Nasdaq&nbsp;and&nbsp;SOXX&nbsp;indices,&nbsp;have&nbsp;performed&nbsp;better&nbsp;than&nbsp;Atmel’s&nbsp;during&nbsp;this&nbsp;two&nbsp;year&nbsp;period.&nbsp;<br />We&nbsp;believe&nbsp;your&nbsp;stockholders&nbsp;are&nbsp;aware&nbsp;of,&nbsp;and&nbsp;fully&nbsp;appreciate,&nbsp;these&nbsp;risks&nbsp;and&nbsp;challenges&nbsp;confronting&nbsp;Atmel’s&nbsp;current&nbsp;course&nbsp;and&nbsp;will&nbsp;find&nbsp;the&nbsp;certain&nbsp;value&nbsp;we&nbsp;are&nbsp;offering&nbsp;for&nbsp;their&nbsp;shares&nbsp;to&nbsp;be&nbsp;an&nbsp;attractive&nbsp;alternative&nbsp;to&nbsp;the&nbsp;otherwise&nbsp;uncertain&nbsp;future&nbsp;facing&nbsp;Atmel.<br /><br />Contemplated&nbsp;Transaction<br /><br />As&nbsp;the&nbsp;lead&nbsp;participant,&nbsp;Microchip&nbsp;would&nbsp;acquire&nbsp;Atmel&nbsp;in&nbsp;a&nbsp;cash&nbsp;merger&nbsp;(subject&nbsp;to&nbsp;Atmel’s&nbsp;potential&nbsp;desire&nbsp;for&nbsp;some&nbsp;common&nbsp;stock).&nbsp;The&nbsp;transaction&nbsp;would&nbsp;be&nbsp;financed&nbsp;with&nbsp;a&nbsp;combination&nbsp;of&nbsp;cash&nbsp;from&nbsp;Microchip&nbsp;and&nbsp;proceeds&nbsp;from&nbsp;the&nbsp;sale&nbsp;of&nbsp;certain&nbsp;Atmel&nbsp;assets&nbsp;to&nbsp;ON&nbsp;Semiconductor.&nbsp;With&nbsp;respect&nbsp;to&nbsp;the&nbsp;latter,&nbsp;ON&nbsp;Semiconductor&nbsp;would&nbsp;acquire&nbsp;the&nbsp;assets&nbsp;related&nbsp;to&nbsp;Atmel’s&nbsp;nonvolatile&nbsp;memory&nbsp;and&nbsp;RF&nbsp;and&nbsp;automotive&nbsp;businesses&nbsp;immediately&nbsp;prior&nbsp;to&nbsp;the&nbsp;merger&nbsp;closing.&nbsp;ON&nbsp;Semiconductor&nbsp;would&nbsp;finance&nbsp;its&nbsp;purchase&nbsp;using&nbsp;a&nbsp;combination&nbsp;of&nbsp;existing&nbsp;cash&nbsp;resources,&nbsp;borrowings&nbsp;under&nbsp;its&nbsp;existing&nbsp;credit&nbsp;facility&nbsp;and&nbsp;additional&nbsp;financing.&nbsp;<br /><br />Although&nbsp;not&nbsp;a&nbsp;condition&nbsp;to&nbsp;our&nbsp;offer,&nbsp;Microchip&nbsp;intends&nbsp;to&nbsp;dispose&nbsp;of&nbsp;Atmel’s&nbsp;ASIC&nbsp;business&nbsp;upon&nbsp;completing&nbsp;the&nbsp;acquisition&nbsp;or&nbsp;shortly&nbsp;thereafter.&nbsp;Microchip&nbsp;is&nbsp;confident&nbsp;that&nbsp;it&nbsp;could&nbsp;divest&nbsp;the&nbsp;business&nbsp;and&nbsp;has&nbsp;engaged&nbsp;recently&nbsp;in&nbsp;discussions&nbsp;with&nbsp;a&nbsp;third&nbsp;party&nbsp;who&nbsp;has&nbsp;expressed&nbsp;interest&nbsp;in&nbsp;acquiring&nbsp;it.&nbsp;<br /><br />Compelling&nbsp;Business&nbsp;Rationale&nbsp;that&nbsp;will&nbsp;Benefit&nbsp;Customers&nbsp;and&nbsp;Business&nbsp;Partners<br /><br />It&nbsp;is&nbsp;clear&nbsp;that&nbsp;your&nbsp;businesses&nbsp;would&nbsp;thrive&nbsp;inside&nbsp;Microchip&nbsp;and&nbsp;ON&nbsp;Semiconductor.&nbsp;Microchip&nbsp;is&nbsp;a&nbsp;leading&nbsp;provider&nbsp;of&nbsp;microcontrollers&nbsp;and&nbsp;analog&nbsp;semiconductors,&nbsp;having&nbsp;posted&nbsp;industry-leading&nbsp;financial&nbsp;results&nbsp;and&nbsp;superior&nbsp;shareholder&nbsp;returns.&nbsp;Microchip&nbsp;has&nbsp;a&nbsp;proven&nbsp;reputation&nbsp;for&nbsp;providing&nbsp;low-risk&nbsp;product&nbsp;development,&nbsp;lower&nbsp;total&nbsp;system&nbsp;cost&nbsp;and&nbsp;faster&nbsp;time&nbsp;to&nbsp;market&nbsp;for&nbsp;thousands&nbsp;of&nbsp;diverse&nbsp;customer&nbsp;applications&nbsp;worldwide&nbsp;spanning&nbsp;the&nbsp;automotive,&nbsp;communications,&nbsp;computing,&nbsp;consumer&nbsp;and&nbsp;industrial&nbsp;control&nbsp;markets.&nbsp;And&nbsp;ON&nbsp;Semiconductor&nbsp;is&nbsp;a&nbsp;leader&nbsp;in&nbsp;analog&nbsp;and&nbsp;mixed&nbsp;signal&nbsp;technology&nbsp;and&nbsp;design,&nbsp;with&nbsp;a&nbsp;focus&nbsp;on&nbsp;driving&nbsp;shareholder&nbsp;returns&nbsp;through&nbsp;strong&nbsp;margins&nbsp;and&nbsp;superior&nbsp;cash&nbsp;flow.&nbsp;ON&nbsp;Semiconductor&nbsp;is&nbsp;well-positioned&nbsp;as&nbsp;a&nbsp;preferred&nbsp;supplier&nbsp;of&nbsp;efficient&nbsp;power&nbsp;solutions&nbsp;to&nbsp;customers&nbsp;in&nbsp;the&nbsp;power&nbsp;supply,&nbsp;automotive,&nbsp;communication,&nbsp;computer,&nbsp;digital&nbsp;and&nbsp;consumer,&nbsp;medial,&nbsp;industrial&nbsp;and&nbsp;military/aerospace&nbsp;markets,&nbsp;with&nbsp;recognized&nbsp;excellence&nbsp;in&nbsp;sales&nbsp;and&nbsp;marketing,&nbsp;supply&nbsp;chain&nbsp;management&nbsp;and&nbsp;world&nbsp;class,&nbsp;high&nbsp;volume,&nbsp;cost&nbsp;effective&nbsp;manufacturing.<br /><br />Your&nbsp;customers&nbsp;and&nbsp;business&nbsp;partners&nbsp;will&nbsp;benefit&nbsp;from&nbsp;a&nbsp;more&nbsp;complete,&nbsp;robust&nbsp;and&nbsp;competitive&nbsp;product&nbsp;offering&nbsp;from&nbsp;a&nbsp;combined&nbsp;company&nbsp;that&nbsp;is&nbsp;better&nbsp;positioned&nbsp;to&nbsp;deliver&nbsp;high-quality&nbsp;design&nbsp;components&nbsp;immediately&nbsp;as&nbsp;well&nbsp;as&nbsp;technology&nbsp;road&nbsp;maps&nbsp;and&nbsp;innovative&nbsp;solutions&nbsp;to&nbsp;help&nbsp;them&nbsp;stay&nbsp;ahead&nbsp;of&nbsp;tomorrow’s&nbsp;design&nbsp;trends.<br /><br />Attractive&nbsp;Opportunity&nbsp;for&nbsp;Atmel’s&nbsp;Talented&nbsp;Employee&nbsp;Base<br /><br />We&nbsp;also&nbsp;believe&nbsp;the&nbsp;transaction&nbsp;we&nbsp;are&nbsp;proposing&nbsp;represents&nbsp;a&nbsp;uniquely&nbsp;attractive&nbsp;opportunity&nbsp;for&nbsp;Atmel’s&nbsp;employees&nbsp;to&nbsp;join&nbsp;with&nbsp;companies&nbsp;better&nbsp;able&nbsp;to&nbsp;respond&nbsp;to&nbsp;marketplace&nbsp;challenges&nbsp;and&nbsp;compete&nbsp;successfully&nbsp;over&nbsp;the&nbsp;long-term.&nbsp;We&nbsp;have&nbsp;the&nbsp;highest&nbsp;respect&nbsp;for&nbsp;the&nbsp;quality&nbsp;of&nbsp;Atmel’s&nbsp;work-force&nbsp;and&nbsp;its&nbsp;culture&nbsp;of&nbsp;innovation.&nbsp;A&nbsp;significant&nbsp;portion&nbsp;of&nbsp;the&nbsp;transaction&nbsp;value&nbsp;is&nbsp;represented&nbsp;by&nbsp;the&nbsp;talented&nbsp;employees&nbsp;that&nbsp;would&nbsp;continue&nbsp;to&nbsp;work&nbsp;for&nbsp;our&nbsp;companies&nbsp;going&nbsp;forward.&nbsp;We&nbsp;are&nbsp;therefore&nbsp;ready&nbsp;to&nbsp;discuss&nbsp;with&nbsp;you&nbsp;the&nbsp;best&nbsp;way&nbsp;to&nbsp;structure&nbsp;incentives&nbsp;to&nbsp;retain&nbsp;and&nbsp;motivate&nbsp;your&nbsp;key&nbsp;talent&nbsp;following&nbsp;the&nbsp;transaction.<br /><br />Prepared&nbsp;to&nbsp;Engage&nbsp;in&nbsp;Meaningful&nbsp;Discussions&nbsp;Promptly<br /><br />We&nbsp;have&nbsp;dedicated&nbsp;significant&nbsp;time&nbsp;and&nbsp;resources&nbsp;in&nbsp;evaluating&nbsp;the&nbsp;merits&nbsp;and&nbsp;risks&nbsp;of&nbsp;this&nbsp;transaction&nbsp;and&nbsp;are&nbsp;confident&nbsp;that&nbsp;it&nbsp;can&nbsp;be&nbsp;consummated&nbsp;expeditiously&nbsp;in&nbsp;partnership&nbsp;with&nbsp;your&nbsp;team.&nbsp;We&nbsp;have&nbsp;reviewed&nbsp;the&nbsp;transaction&nbsp;with&nbsp;our&nbsp;respective&nbsp;counsel&nbsp;and&nbsp;are&nbsp;confident&nbsp;that&nbsp;the&nbsp;transaction&nbsp;will&nbsp;receive&nbsp;all&nbsp;necessary&nbsp;regulatory&nbsp;approvals.&nbsp;Although&nbsp;we&nbsp;have&nbsp;completed&nbsp;extensive&nbsp;due&nbsp;diligence&nbsp;based&nbsp;on&nbsp;publicly&nbsp;available&nbsp;information,&nbsp;our&nbsp;proposal&nbsp;is&nbsp;of&nbsp;course&nbsp;subject&nbsp;to&nbsp;customary&nbsp;due&nbsp;diligence,&nbsp;as&nbsp;well&nbsp;as&nbsp;the&nbsp;negotiation&nbsp;of&nbsp;definitive&nbsp;transaction&nbsp;agreements&nbsp;(including&nbsp;with&nbsp;respect&nbsp;to&nbsp;ON&nbsp;Semiconductor’s&nbsp;additional&nbsp;financing)&nbsp;and&nbsp;the&nbsp;satisfaction&nbsp;of&nbsp;customary&nbsp;conditions&nbsp;to&nbsp;be&nbsp;set&nbsp;forth&nbsp;in&nbsp;such&nbsp;agreements.&nbsp;We&nbsp;have&nbsp;retained&nbsp;J.P.&nbsp;Morgan&nbsp;to&nbsp;act&nbsp;as&nbsp;our&nbsp;financial&nbsp;advisor&nbsp;and&nbsp;Simpson&nbsp;Thacher&nbsp;&&nbsp;Bartlett&nbsp;LLP&nbsp;and&nbsp;DLA&nbsp;Piper&nbsp;as&nbsp;legal&nbsp;advisors.&nbsp;We&nbsp;and&nbsp;our&nbsp;advisors&nbsp;are&nbsp;available&nbsp;to&nbsp;meet&nbsp;with&nbsp;you&nbsp;immediately&nbsp;to&nbsp;discuss&nbsp;the&nbsp;terms&nbsp;of&nbsp;our&nbsp;proposal&nbsp;and&nbsp;to&nbsp;commence&nbsp;due&nbsp;diligence&nbsp;and&nbsp;the&nbsp;negotiation&nbsp;of&nbsp;definitive&nbsp;documentation&nbsp;for&nbsp;the&nbsp;transaction.<br /><br />We&nbsp;believe&nbsp;now&nbsp;is&nbsp;the&nbsp;right&nbsp;time&nbsp;to&nbsp;pursue&nbsp;the&nbsp;transaction,&nbsp;and&nbsp;we&nbsp;are&nbsp;committed&nbsp;to&nbsp;moving&nbsp;forward&nbsp;on&nbsp;an&nbsp;expedited&nbsp;basis.&nbsp;Considering&nbsp;the&nbsp;substantial&nbsp;premium&nbsp;and&nbsp;other&nbsp;compelling&nbsp;benefits&nbsp;of&nbsp;this&nbsp;proposal,&nbsp;we&nbsp;are&nbsp;confident&nbsp;that,&nbsp;given&nbsp;the&nbsp;opportunity,&nbsp;Atmel’s&nbsp;stockholders&nbsp;and&nbsp;your&nbsp;other&nbsp;stakeholders&nbsp;will&nbsp;enthusiastically&nbsp;support&nbsp;this&nbsp;offer.&nbsp;In&nbsp;light&nbsp;of&nbsp;the&nbsp;foregoing,&nbsp;we&nbsp;ask&nbsp;that&nbsp;you&nbsp;engage&nbsp;us&nbsp;in&nbsp;a&nbsp;meaningful&nbsp;and&nbsp;productive&nbsp;discussion&nbsp;about&nbsp;this&nbsp;proposal&nbsp;promptly&nbsp;and&nbsp;with&nbsp;a&nbsp;sense&nbsp;of&nbsp;urgency.&nbsp;We&nbsp;remain&nbsp;available&nbsp;to&nbsp;meet&nbsp;with&nbsp;you&nbsp;further&nbsp;to&nbsp;continue&nbsp;to&nbsp;discuss&nbsp;the&nbsp;value&nbsp;creation&nbsp;opportunity&nbsp;that&nbsp;the&nbsp;potential&nbsp;transaction&nbsp;represents.&nbsp;We&nbsp;look&nbsp;forward&nbsp;to&nbsp;your&nbsp;prompt&nbsp;response.&nbsp;<br /><br />Sincerely,<br /><br />Steven&nbsp;Sanghi&nbsp;Keith&nbsp;Jackson<br /><br />President,&nbsp;Chief&nbsp;Executive&nbsp;Officer&nbsp;and&nbsp;President&nbsp;and&nbsp;Chief&nbsp;Executive&nbsp;Officer<br /><br />Chairman&nbsp;of&nbsp;the&nbsp;Board&nbsp;ON&nbsp;Semiconductor&nbsp;Corporation<br /><br />Microchip&nbsp;Technology&nbsp;Incorporated&nbsp;<br /><br />Microchip&nbsp;and&nbsp;ON&nbsp;Semiconductor&nbsp;will&nbsp;host&nbsp;a&nbsp;joint&nbsp;analyst/investor&nbsp;conference&nbsp;call&nbsp;on&nbsp;Thursday,&nbsp;October&nbsp;2,&nbsp;2008&nbsp;at&nbsp;9:00&nbsp;a.m.&nbsp;Eastern&nbsp;Time&nbsp;to&nbsp;discuss&nbsp;the&nbsp;announcement.&nbsp;The&nbsp;dial-in&nbsp;number&nbsp;for&nbsp;United&nbsp;States&nbsp;callers&nbsp;is&nbsp;(800)&nbsp;214-0694&nbsp;and&nbsp;the&nbsp;dial-in&nbsp;for&nbsp;participants&nbsp;located&nbsp;outside&nbsp;the&nbsp;United&nbsp;States&nbsp;is&nbsp;(719)&nbsp;955-1425.&nbsp;The&nbsp;passcode&nbsp;for&nbsp;all&nbsp;callers&nbsp;is&nbsp;300066.&nbsp;Please&nbsp;dial&nbsp;in&nbsp;at&nbsp;least&nbsp;10&nbsp;minutes&nbsp;in&nbsp;advance&nbsp;of&nbsp;the&nbsp;call.&nbsp;A&nbsp;slide&nbsp;presentation&nbsp;and&nbsp;live&nbsp;audio&nbsp;webcast&nbsp;of&nbsp;the&nbsp;call&nbsp;will&nbsp;be&nbsp;available&nbsp;at&nbsp;www.microchip.com&nbsp;and&nbsp;www.onsemi.com.&nbsp;Playback&nbsp;of&nbsp;the&nbsp;conference&nbsp;call&nbsp;will&nbsp;be&nbsp;available&nbsp;for&nbsp;replay&nbsp;through&nbsp;the&nbsp;close&nbsp;of&nbsp;business&nbsp;on&nbsp;October&nbsp;9,&nbsp;2008,&nbsp;and&nbsp;can&nbsp;be&nbsp;accessed&nbsp;by&nbsp;dialing&nbsp;(888)&nbsp;348-4629&nbsp;from&nbsp;within&nbsp;the&nbsp;United&nbsp;States&nbsp;or&nbsp;(719)&nbsp;884-8882&nbsp;from&nbsp;outside&nbsp;the&nbsp;United&nbsp;States.&nbsp;The&nbsp;passcode&nbsp;for&nbsp;the&nbsp;replay&nbsp;is&nbsp;300066.<br /><br />Forward&nbsp;Looking&nbsp;Statements<br /><br />Statements&nbsp;in&nbsp;this&nbsp;press&nbsp;release,&nbsp;including&nbsp;those&nbsp;regarding&nbsp;Microchip&nbsp;Technology’s&nbsp;and&nbsp;ON&nbsp;Semiconductor’s&nbsp;proposal&nbsp;to&nbsp;acquire&nbsp;Atmel&nbsp;Corporation,&nbsp;may&nbsp;contain&nbsp;forward-looking&nbsp;statements&nbsp;within&nbsp;the&nbsp;meaning&nbsp;of&nbsp;the&nbsp;Private&nbsp;Securities&nbsp;Litigation&nbsp;Reform&nbsp;Act&nbsp;of&nbsp;1995.&nbsp;Words&nbsp;such&nbsp;as&nbsp;“anticipate”,&nbsp;“believe”,&nbsp;“expect”,&nbsp;“intend”,&nbsp;“estimate”&nbsp;(and&nbsp;the&nbsp;negative&nbsp;of&nbsp;any&nbsp;of&nbsp;these&nbsp;terms),&nbsp;“future”&nbsp;and&nbsp;similar&nbsp;expressions&nbsp;help&nbsp;identify&nbsp;forward&nbsp;looking&nbsp;statements.&nbsp;These&nbsp;forward&nbsp;looking&nbsp;statements&nbsp;are&nbsp;subject&nbsp;to&nbsp;business&nbsp;and&nbsp;economic&nbsp;risk&nbsp;and&nbsp;reflect&nbsp;the&nbsp;current&nbsp;expectations&nbsp;of&nbsp;each&nbsp;of&nbsp;Microchip’s&nbsp;and/or&nbsp;ON&nbsp;Semiconductor’s&nbsp;management,&nbsp;as&nbsp;applicable,&nbsp;and&nbsp;involve&nbsp;subjects&nbsp;that&nbsp;are&nbsp;inherently&nbsp;uncertain&nbsp;and&nbsp;difficult&nbsp;to&nbsp;predict.&nbsp;Actual&nbsp;results&nbsp;could&nbsp;differ&nbsp;materially&nbsp;from&nbsp;these&nbsp;forward-looking&nbsp;statements&nbsp;because&nbsp;of&nbsp;factors&nbsp;such&nbsp;as:&nbsp;the&nbsp;possibility&nbsp;that&nbsp;Microchip’s&nbsp;and&nbsp;ON&nbsp;Semiconductor’s&nbsp;joint&nbsp;proposal&nbsp;to&nbsp;acquire&nbsp;Atmel&nbsp;will&nbsp;be&nbsp;rejected&nbsp;by&nbsp;Atmel’s&nbsp;board&nbsp;of&nbsp;directors&nbsp;or&nbsp;shareholders;&nbsp;the&nbsp;possibility&nbsp;that&nbsp;ON&nbsp;Semiconductor&nbsp;will&nbsp;not&nbsp;be&nbsp;able&nbsp;to&nbsp;obtain&nbsp;sufficient&nbsp;financing;&nbsp;the&nbsp;possibility&nbsp;that&nbsp;Microchip&nbsp;and&nbsp;ON&nbsp;Semiconductor&nbsp;will&nbsp;be&nbsp;unable&nbsp;to&nbsp;reach&nbsp;agreement&nbsp;on&nbsp;the&nbsp;terms&nbsp;of&nbsp;the&nbsp;sale&nbsp;of&nbsp;certain&nbsp;Atmel&nbsp;assets;&nbsp;the&nbsp;possibility&nbsp;that,&nbsp;even&nbsp;if&nbsp;Microchip’s&nbsp;and&nbsp;ON&nbsp;Semiconductor’s&nbsp;proposal&nbsp;is&nbsp;accepted,&nbsp;the&nbsp;transaction&nbsp;will&nbsp;not&nbsp;close&nbsp;or&nbsp;that&nbsp;the&nbsp;closing&nbsp;may&nbsp;be&nbsp;delayed;&nbsp;the&nbsp;effect&nbsp;of&nbsp;the&nbsp;announcement&nbsp;of&nbsp;the&nbsp;proposal&nbsp;on&nbsp;each&nbsp;of&nbsp;Microchip’s,&nbsp;ON&nbsp;Semiconductor’s&nbsp;and&nbsp;Atmel’s&nbsp;strategic&nbsp;relationships,&nbsp;operating&nbsp;results&nbsp;and&nbsp;businesses&nbsp;generally,&nbsp;including&nbsp;the&nbsp;ability&nbsp;to&nbsp;retain&nbsp;key&nbsp;employees;&nbsp;each&nbsp;of&nbsp;Microchip’s&nbsp;and&nbsp;ON&nbsp;Semiconductor’s&nbsp;ability&nbsp;to&nbsp;successfully&nbsp;integrate&nbsp;Atmel’s&nbsp;operations&nbsp;and&nbsp;employees;&nbsp;general&nbsp;economic&nbsp;conditions;&nbsp;and&nbsp;other&nbsp;factors&nbsp;described&nbsp;in&nbsp;Microchip’s&nbsp;SEC&nbsp;filings&nbsp;(including&nbsp;Microchip’s&nbsp;Annual&nbsp;Report&nbsp;on&nbsp;Form&nbsp;10-K&nbsp;for&nbsp;the&nbsp;fiscal&nbsp;year&nbsp;ended&nbsp;March&nbsp;31,&nbsp;2008&nbsp;and&nbsp;Quarterly&nbsp;Report&nbsp;on&nbsp;Form&nbsp;10-Q&nbsp;for&nbsp;the&nbsp;quarter&nbsp;ended&nbsp;June&nbsp;30,&nbsp;2008)&nbsp;and&nbsp;ON&nbsp;Semiconductor’s&nbsp;SEC&nbsp;filings&nbsp;(including&nbsp;ON&nbsp;Semiconductor’s&nbsp;Annual&nbsp;Report&nbsp;on&nbsp;Form&nbsp;10-K&nbsp;for&nbsp;the&nbsp;fiscal&nbsp;year&nbsp;ended&nbsp;December&nbsp;31,&nbsp;2007&nbsp;and&nbsp;Quarterly&nbsp;Report&nbsp;on&nbsp;Form&nbsp;10-Q&nbsp;for&nbsp;the&nbsp;quarter&nbsp;ended&nbsp;June&nbsp;27,&nbsp;2008).&nbsp;If&nbsp;any&nbsp;of&nbsp;these&nbsp;risks&nbsp;or&nbsp;uncertainties&nbsp;materialize,&nbsp;the&nbsp;joint&nbsp;proposal&nbsp;may&nbsp;not&nbsp;be&nbsp;accepted,&nbsp;the&nbsp;acquisitions&nbsp;may&nbsp;not&nbsp;be&nbsp;consummated,&nbsp;the&nbsp;potential&nbsp;benefits&nbsp;of&nbsp;the&nbsp;acquisitions&nbsp;may&nbsp;not&nbsp;be&nbsp;realized,&nbsp;Microchip’s,&nbsp;ON&nbsp;Semiconductor’s&nbsp;and/or&nbsp;Atmel’s&nbsp;operating&nbsp;results&nbsp;and&nbsp;financial&nbsp;performance&nbsp;could&nbsp;suffer,&nbsp;and&nbsp;actual&nbsp;results&nbsp;could&nbsp;differ&nbsp;materially&nbsp;from&nbsp;the&nbsp;expectations&nbsp;described&nbsp;in&nbsp;these&nbsp;forward-looking&nbsp;statements.&nbsp;All&nbsp;information&nbsp;in&nbsp;this&nbsp;press&nbsp;release&nbsp;is&nbsp;as&nbsp;of&nbsp;October&nbsp;2,&nbsp;2008.&nbsp;Each&nbsp;of&nbsp;Microchip&nbsp;and&nbsp;ON&nbsp;Semiconductor&nbsp;undertakes&nbsp;no&nbsp;duty&nbsp;to&nbsp;publicly&nbsp;update&nbsp;any&nbsp;forward-looking&nbsp;statement,&nbsp;whether&nbsp;as&nbsp;a&nbsp;result&nbsp;of&nbsp;new&nbsp;information,&nbsp;future&nbsp;developments&nbsp;or&nbsp;otherwise.<br /><br />About&nbsp;Microchip&nbsp;Technology<br /><br />Microchip&nbsp;Technology&nbsp;Incorporated&nbsp;(NASDAQ:&nbsp;MCHP)&nbsp;is&nbsp;a&nbsp;leading&nbsp;provider&nbsp;of&nbsp;microcontroller&nbsp;and&nbsp;analog&nbsp;semiconductors,&nbsp;providing&nbsp;low-risk&nbsp;product&nbsp;development,&nbsp;lower&nbsp;total&nbsp;system&nbsp;cost&nbsp;and&nbsp;faster&nbsp;time&nbsp;to&nbsp;market&nbsp;for&nbsp;thousands&nbsp;of&nbsp;diverse&nbsp;customer&nbsp;applications&nbsp;worldwide.&nbsp;Headquartered&nbsp;in&nbsp;Chandler,&nbsp;Ariz.,&nbsp;Microchip&nbsp;offers&nbsp;outstanding&nbsp;technical&nbsp;support&nbsp;along&nbsp;with&nbsp;dependable&nbsp;delivery&nbsp;and&nbsp;quality.&nbsp;For&nbsp;more&nbsp;information,&nbsp;visit&nbsp;the&nbsp;Microchip’s&nbsp;website&nbsp;at&nbsp;www.microchip.com.<br /><br />About&nbsp;ON&nbsp;Semiconductor<br /><br />With&nbsp;its&nbsp;global&nbsp;logistics&nbsp;network&nbsp;and&nbsp;strong&nbsp;product&nbsp;portfolio,&nbsp;ON&nbsp;Semiconductor&nbsp;Corporation&nbsp;(NASDAQ:&nbsp;ONNN)&nbsp;is&nbsp;a&nbsp;preferred&nbsp;supplier&nbsp;of&nbsp;high&nbsp;performance,&nbsp;energy&nbsp;efficient,&nbsp;silicon&nbsp;solutions&nbsp;to&nbsp;customers&nbsp;in&nbsp;the&nbsp;power&nbsp;supply,&nbsp;automotive,&nbsp;communication,&nbsp;computer,&nbsp;consumer,&nbsp;medical,&nbsp;industrial,&nbsp;mobile&nbsp;phone,&nbsp;and&nbsp;military/aerospace&nbsp;markets.&nbsp;The&nbsp;company’s&nbsp;broad&nbsp;portfolio&nbsp;includes&nbsp;power,&nbsp;analog,&nbsp;DSP,&nbsp;mixed-signal,&nbsp;advance&nbsp;logic,&nbsp;clock&nbsp;management&nbsp;and&nbsp;standard&nbsp;component&nbsp;devices.&nbsp;Global&nbsp;corporate&nbsp;headquarters&nbsp;are&nbsp;located&nbsp;in&nbsp;Phoenix,&nbsp;Arizona.&nbsp;The&nbsp;company&nbsp;operates&nbsp;a&nbsp;network&nbsp;of&nbsp;manufacturing&nbsp;facilities,&nbsp;sales&nbsp;offices&nbsp;and&nbsp;design&nbsp;centers&nbsp;in&nbsp;key&nbsp;markets&nbsp;throughout&nbsp;North&nbsp;America,&nbsp;Europe,&nbsp;and&nbsp;the&nbsp;Asia&nbsp;Pacific&nbsp;regions.&nbsp;For&nbsp;more&nbsp;information,&nbsp;visit&nbsp;http://www.onsemi.com.<br /><br />
 楼主| martin 发表于 2008-10-3 21:22 | 显示全部楼层

Microchip CEO给客户和分销及合作伙伴的信

Microchip&nbsp;Letter&nbsp;to&nbsp;Customers&nbsp;&&nbsp;Channel&nbsp;Partners<br />October&nbsp;2,&nbsp;2008<br />Dear&nbsp;Valued&nbsp;Customers&nbsp;and&nbsp;Channel&nbsp;Partners,<br />We&nbsp;made&nbsp;an&nbsp;important&nbsp;announcement&nbsp;this&nbsp;morning&nbsp;that&nbsp;I&nbsp;would&nbsp;like&nbsp;to&nbsp;share&nbsp;with&nbsp;you.<br />Microchip&nbsp;and&nbsp;ON&nbsp;Semiconductor&nbsp;today&nbsp;announced&nbsp;that&nbsp;we&nbsp;have&nbsp;sent&nbsp;a&nbsp;letter&nbsp;to&nbsp;the<br />Board&nbsp;of&nbsp;Directors&nbsp;of&nbsp;Atmel&nbsp;Corporation&nbsp;proposing&nbsp;to&nbsp;acquire&nbsp;the&nbsp;company.&nbsp;Upon<br />consummating&nbsp;the&nbsp;proposed&nbsp;transaction,&nbsp;Atmel’s&nbsp;Microcontroller&nbsp;business&nbsp;would<br />become&nbsp;part&nbsp;of&nbsp;Microchip’s&nbsp;Microcontroller&nbsp;business.&nbsp;Atmel’s&nbsp;Non&nbsp;Volatile&nbsp;Memory,&nbsp;RF<br />and&nbsp;Automotive&nbsp;businesses&nbsp;would&nbsp;become&nbsp;part&nbsp;of&nbsp;ON&nbsp;Semiconductor.&nbsp;We&nbsp;envision&nbsp;that<br />Microchip&nbsp;would&nbsp;sell&nbsp;Atmel’s&nbsp;ASIC&nbsp;business&nbsp;to&nbsp;a&nbsp;third&nbsp;party.<br />We&nbsp;expect&nbsp;both&nbsp;Microchip&nbsp;and&nbsp;Atmel&nbsp;Microcontroller&nbsp;customers&nbsp;would&nbsp;benefit&nbsp;from<br />having&nbsp;an&nbsp;expanded&nbsp;range&nbsp;of&nbsp;competitive&nbsp;solutions&nbsp;from&nbsp;a&nbsp;single&nbsp;provider.&nbsp;We&nbsp;would&nbsp;of<br />course&nbsp;continue&nbsp;to&nbsp;offer&nbsp;the&nbsp;full&nbsp;range&nbsp;of&nbsp;Microchip&nbsp;Microcontrollers,&nbsp;and&nbsp;deliver&nbsp;on&nbsp;the<br />roadmaps&nbsp;we&nbsp;have&nbsp;shared&nbsp;with&nbsp;you.&nbsp;In&nbsp;addition,&nbsp;you&nbsp;can&nbsp;expect&nbsp;that&nbsp;the&nbsp;strong&nbsp;support<br />that&nbsp;our&nbsp;customers&nbsp;are&nbsp;accustomed&nbsp;to&nbsp;would&nbsp;carry&nbsp;over&nbsp;to&nbsp;the&nbsp;Atmel&nbsp;Microcontroller<br />business&nbsp;as&nbsp;well.<br />Microchip&nbsp;has&nbsp;a&nbsp;proven&nbsp;reputation&nbsp;for&nbsp;enabling&nbsp;low-risk&nbsp;product&nbsp;development,&nbsp;lower&nbsp;total<br />system&nbsp;cost,&nbsp;faster&nbsp;time&nbsp;to&nbsp;market&nbsp;and&nbsp;outstanding&nbsp;customer&nbsp;service&nbsp;for&nbsp;thousands&nbsp;of<br />diverse&nbsp;customer&nbsp;applications&nbsp;worldwide&nbsp;spanning&nbsp;the&nbsp;automotive,&nbsp;communications,<br />computing,&nbsp;consumer&nbsp;and&nbsp;industrial&nbsp;control&nbsp;markets.&nbsp;We&nbsp;expect&nbsp;to&nbsp;apply&nbsp;these&nbsp;same<br />strengths&nbsp;to&nbsp;Atmel’s&nbsp;business&nbsp;while&nbsp;continuing&nbsp;to&nbsp;deliver&nbsp;their&nbsp;full&nbsp;range&nbsp;of<br />microcontrollers,&nbsp;and&nbsp;intend&nbsp;to&nbsp;make&nbsp;the&nbsp;integration&nbsp;process&nbsp;as&nbsp;seamless&nbsp;as&nbsp;possible&nbsp;for<br />you.<br />Today’s&nbsp;announcement&nbsp;is&nbsp;only&nbsp;the&nbsp;proposal&nbsp;for&nbsp;the&nbsp;acquisition&nbsp;of&nbsp;Atmel.&nbsp;As&nbsp;details<br />become&nbsp;clearer&nbsp;in&nbsp;the&nbsp;coming&nbsp;months,&nbsp;we&nbsp;will&nbsp;seek&nbsp;to&nbsp;keep&nbsp;you&nbsp;informed&nbsp;in&nbsp;a&nbsp;timely<br />fashion.&nbsp;At&nbsp;Microchip,&nbsp;your&nbsp;success&nbsp;is&nbsp;paramount&nbsp;to&nbsp;us,&nbsp;and&nbsp;we&nbsp;remain&nbsp;committed&nbsp;to<br />doing&nbsp;our&nbsp;very&nbsp;best&nbsp;to&nbsp;enable&nbsp;your&nbsp;success.<br />Sincerely,<br />Steve
yewuyi 发表于 2008-10-3 21:41 | 显示全部楼层

是个好消息,但也是个坏消息。。。

  
lanyong 发表于 2008-10-3 21:44 | 显示全部楼层

晕,我正打算上avr

avr<br /><br />比较便宜.<br /><br />被microchip收了,不是要涨价了吧.<br /><br />另,atmel的arm系列,我看不少人用.<br />microchip的mips的外设现在没它arm的外设丰富.
lanyong 发表于 2008-10-3 22:00 | 显示全部楼层

最近经济危机

电子行业要重新洗牌?
lanyong 发表于 2008-10-3 22:06 | 显示全部楼层

新浪财经

微芯、On&nbsp;Semi联手报价收购Atmelhttp://www.sina.com.cn&nbsp;&nbsp;2008年10月02日&nbsp;23:14&nbsp;&nbsp;新浪财经<br /><br /><br />  【MarketWatch纽约10月2日讯】北京时间周四晚,微芯科技公司(Microchip&nbsp;Technology&nbsp;Inc.)(MCHP)和On&nbsp;Semiconductor&nbsp;Corp.(ONNN)公布了23亿美元联手收购Atmel&nbsp;Corp.的报价,虽然Atmel似乎不愿被收购。<br /><br />  微芯和On&nbsp;Semi对这家总部位于加州圣何塞的芯片制造商的估价约合5美元/股。<br /><br />  微芯是一家总部位于亚利桑那州Chandler的半导体公司,是本次联手收购的主导方。今晨微芯和On&nbsp;Semi指出,其交易提案所需的部分资金将来自把Atmel的永久存储器、RF、汽车业务售给On&nbsp;Semi。<br /><br />  Atmel制造的芯片用于汽车、家电和军事系统等一系列产品。<br /><br />  但是,今天微芯和On&nbsp;Semi指出,Atmel的董事会似乎对参加合并谈判有抵触情绪。<br /><br />  微芯首席指挥官史蒂夫-桑吉(Steve&nbsp;Sanghi)和On&nbsp;Semi的CEO凯斯-杰克逊(Keith&nbsp;Jackson)在一封致Atmel董事的信中写道:“获悉Atmel董事会在任何条件下都不愿考虑现在进行交易,我们感到非常失望。”<br /><br />  两位CEO还称:“虽然Atmel迄今在剥离无收益的晶圆资产方面取得了一些进展,在早先公布的一项计划引导下运营业绩有了适度改善,但该计划得到成功执行的可能性和时机选择最好也只能称得上难以确定。”<br /><br />  面对经济的不确定性和需求持续下滑,许多芯片制造商已开始苦苦抗争来维持竞争能力。上个月Atmel宣布达成一项交易,出售自己位于德国Heilbronn的晶圆制造厂。该公司当时还称,这是战略重组计划的一个组成部分。<br /><br />  截至美东时间上午11:08,在纳斯达克上市的微芯股票下跌5.6%,On&nbsp;Semi的股价重跌13%。Atmel的交易仍处于暂停状态。<br /><br />&nbsp;&nbsp;&nbsp;&nbsp;新浪声明:本版**内容纯属作者个人观点,仅供投资者参考,并不构成投资建议。投资者据此操作,风险自担。<br />
lanyong 发表于 2008-10-3 22:08 | 显示全部楼层

不安逸

我关注avr系列已经很多年了。<br /><br />因为它是可以和pic系列竞争的.<br /><br />现在要搞到一家独大.<br /><br />avr不要涨价哈!
soso 发表于 2008-10-3 22:19 | 显示全部楼层

不会吧?

&nbsp;&nbsp;&nbsp;microchip真的这么牛?<br />&nbsp;&nbsp;&nbsp;我喜欢用PIC那不是站队列没错?
hq_y 发表于 2008-10-3 22:30 | 显示全部楼层

嗯,pic也太有钱了吧

  
yewuyi 发表于 2008-10-3 22:37 | 显示全部楼层

涨价估计不可能

因为个人认为目前来说威胁MCP的并不是ATMEL的MEGA,MCP在产品一致性等质量控制上比较厉害,但自从成为8BIT老大后,创新能力有所下降,特别是在产品价格控制的创新上太少,造成目前大家公认的MCP价格比较贵的现状,还好的是,MCP的技术服务能力相对其它厂家来说很强悍,如果真收购,涨价应该不可能,因为这个市场厂家太多,退出一个ATMEL,还有N多的厂家在竞争,而且ATMEL这个品牌消失的可能基本没有,所以个人认为不会涨价,甚至来说可能是进一步降价才对,ATMEL对成本的控制在欧美系里面应该算是比较强悍的,MCP吸收其优点对MCP来说还是很合算的。。。
machunshui 发表于 2008-10-3 23:02 | 显示全部楼层

真看不清楚microchip到底要怎么玩啊

真看清楚microchip到底要怎么玩啊?<br /><br />本来一大堆产品,<br /><br />现在要玩双手互搏吗??<br /><br />pic16,pic18&nbsp;vs&nbsp;avr???????<br /><br />pic32&nbsp;vs&nbsp;avr32&nbsp;以及atmel的cortex&nbsp;m3产品??????????
xieyuanbin 发表于 2008-10-4 18:46 | 显示全部楼层

晕啊,这么大消息现在才看到

不过,我倒是希望,整合后,能出来一个新的PIC,集合ATMEL和PIC的优点于一身的全新PIC,而不需关心专利问题
ddb_21ic 发表于 2008-10-4 18:47 | 显示全部楼层

**通,一手GSM一手CDMA

  
zyok 发表于 2008-10-4 18:59 | 显示全部楼层

呵呵,这年头,有钱能使磨推龟.....

  
lanyong 发表于 2008-10-4 19:29 | 显示全部楼层

PICaVr 哈哈

  
兰天白云 发表于 2008-10-5 08:30 | 显示全部楼层

有点晕,PIC太有钱

  
ijk 发表于 2008-10-6 16:51 | 显示全部楼层

Microchip收购Atmel可能会消化不良

&nbsp;&nbsp;网上看到一篇评论,说得挺有道理:<br /><br />http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=210605712<br /><br />Comment:&nbsp;A&nbsp;skeptic's&nbsp;view&nbsp;of&nbsp;the&nbsp;Microchip/Atmel&nbsp;merger<br /><br />摘录如下:<br />Based&nbsp;on&nbsp;watching&nbsp;electronics&nbsp;companies&nbsp;try&nbsp;to&nbsp;merge&nbsp;and&nbsp;manage&nbsp;two&nbsp;different&nbsp;product&nbsp;lines&nbsp;over&nbsp;the&nbsp;years,&nbsp;I&nbsp;don't&nbsp;think&nbsp;Microchip's&nbsp;plans&nbsp;for&nbsp;supporting&nbsp;combined&nbsp;8/16-&nbsp;and&nbsp;32-bit&nbsp;MCU&nbsp;product&nbsp;lines,&nbsp;if&nbsp;its&nbsp;attempted&nbsp;acquisition&nbsp;of&nbsp;Atmel&nbsp;succeeds,&nbsp;is&nbsp;realistic.&nbsp;<br /><br />History&nbsp;suggests&nbsp;that&nbsp;a&nbsp;company&nbsp;with&nbsp;two&nbsp;8/16-bit&nbsp;microcontroller&nbsp;architectures&nbsp;and&nbsp;at&nbsp;least&nbsp;two&nbsp;different&nbsp;32-bit&nbsp;CPU&nbsp;architectures&nbsp;will&nbsp;not&nbsp;survive&nbsp;very&nbsp;long...<br />
浪际天涯 发表于 2008-10-7 08:52 | 显示全部楼层

re

microchip&nbsp;很强啊,米真多,短短几年的发展就想收购&nbsp;atmel,<br />不过AVR&nbsp;和PIC16,18是有的一拼。AVR在价格上很有优势。<br />PIC在欧美系单片机里,价格算比较高的。<br />不过新系列&nbsp;PIC24,&nbsp;PIC32价格也比之前的产品好很多了。<br />当然&nbsp;PIC32和atmel&nbsp;的arm比起来还差很多的。<br /><br />最近总结出芯片的价格规律:并不是芯片性能高,价格就高,&nbsp;芯片的出货量才是决定价格的主要因素的。<br /><br />个人还是认为&nbsp;ateml不要被收购,要不然形成寡头对偶们消费者不利啊!
machunshui 发表于 2008-10-7 10:55 | 显示全部楼层

PIC32和atmel 的arm比起来好很多

PIC32和atmel&nbsp;的arm比起来好很多,<br /><br />而不是差很多!
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