Familiar things, the sources said the U.S. Semiconductor manufacturers Microchip Technology inc. plans early next week to trade Atmel Corp to submit a binding offer, challenge the latter and Dialog Semiconductor Plc of the merger plan.

Sources said the Microchip and Atmel merger talks have made some progress, but negotiation is still likely to rupture. The matter is confidential, who requested anonymity.

One of the sources said, adding that the Microchip due diligence process time longer than expected, because of concerns about Atmel facing a weaker business trends.

The Microchip and Atmel did not immediately respond to requests for comment.

Reuters reported last month that Microchip is launched an $3.8 billion unsolicited offer the Atmel behind the buyer.

Atmel said in December 11, already start negotiations with did not disclose the identity of the bidder, the bidder's cash offer $9 per share. Compared with the Atmel has accepted Dialog in September in cash and stock offer, new quotation may be considered more valuable.