ON Semiconductor cited weakness in the semiconductor market and the global financial crisis as reasons for walking away from the joint $2.3 billion bid for Atmel.

ON Semiconductor and Microchip Tech made a joint, unsolicited bid to acquire Atmel in October, seeking to battle slowing growth in the semiconductor market by combining compatible products.

Atmel rejected the bid as too low, prompting ON Semiconductor and Microchip Tech to launch a hostile bid for the company.

Last week, Microchip Tech said it and ON Semiconductor remained fully committed to their acquisition proposal and planned to nominate a slate of directors at Atmel's annual shareholder meeting.

Atmel and Microchip Tech could not be immediately reached for comment.

(Reporting by Jessica Hall; editing by John Wallace)