Microchip Technology agreed to acquire a fellow chipmaker, the Atmel Corporation, for about $3.6 billion, part of a wave of mergers and acquisitions within the semiconductor industry.

Chip makers have been combining to cut costs and build scale for their customers. Microchip agreed to acquire the 37-year-old chipmaker Micrel in May for about $839 million. Microchip purchased Supertex for $394 million in 2014, and the year before that, bought the closely held Brussels-based EqcoLogic for an undisclosed amount.

Microchip joins larger peers in this round of consolidation, including Avago Technologies, which agreed to acquire Broadcom for $37 billion, one of the biggest deals ever within the semiconductor industry.

“As the semiconductor industry consolidates, Microchip continues to execute a highly successful consolidation strategy with a string of acquisitions that have helped double our revenue growth compared to our organic revenue rate over the last few years,” said Steve Sanghi, president and chief executive of Microchip.