Pass chip maker Atmel is considering selling

According to reports, three sources revealed today that microcontroller maker Atmel Corp. is considering various strategic options, including possible sale. The microcontroller is a small processor that can be used in various electronic products. Medium-sized semiconductor manufacturers are becoming attractive targets for acquisitions. Some of them manufacture chips for "Internet of Things" devices such as automobiles and watches, while larger-scale semiconductor makers hope that the chips will enrich their product lines.

Atmel’s current market value is approximately $4 billion. Two sources said that the company is consulting its investment bank Qatalyst Partners on its own sale. The sources also said that it is not yet clear whether Atmel will make a final decision on the sale.

The source requested not to be identified because Atmel's sales process was confidential. Atmel declined to comment on this, and Qatalyst did not respond to requests for comment.

In the Nasdaq stock market on Monday, Atmel shares closed at $9.75, up 3.6% from the previous day. Before the close, the company's share price rose 7.2% for the time being affected by the sale.

Atmel is headquartered in San Jose, California, and produces microcontrollers and other hardware devices that can be used for the "Internet of Things." According to the company's website, Atmel supplies parts for wearable devices such as smart watches and fitness wristbands.

In May of this year, the company’s chief executive Steve Laub said that he will retire at the end of August this year. Sources said that this move may prompt the company to consider strategic options such as sales.

In the first quarter of 2015, Atmel's adjusted net profit fell to US$451 million, and diluted earnings per share were 11 cents, compared with a net profit of US$49.2 million in the same period last year. Earnings per share of 12 cents. The company predicts that the second quarter of this year's revenue will be between 310 million to 326 million US dollars, gross margin will be about 48%. Last year, the company’s revenue was $1.41 billion.

Atmel may be attractive to semiconductor companies that want to bundle microcontrollers with analog components or power management components such as sensors. In 2008, chip makers ON Semiconductor and Microchip Technology jointly launched a hostile takeover of Atmel, but they eventually opted out.

Recently, M&A transactions in the semiconductor industry have been very active. News of large-scale transactions have been reported in recent weeks. For example, Avago Technologies has announced the acquisition of Broadcom and Intel’s acquisition of Altera.

According to Reuters data, so far this year, the global semiconductor industry's M & A transactions totaled $ 80 billion, the highest amount of transactions since 2000.