U.S. chipmaker Onsemi is making another attempt to acquire smaller rival Allegro MicroSystems for cash, after being rebuffed repeatedly over the past six months.

Onsemi has offered to pay $35.10 for each share held by Allegro's shareholders, it said on Wednesday. This is 1.73% higher than its previous offer made in 2024.

The deal would value Allegro MicroSystems at $6.46 billion, as per a Reuters calculation, and is at a premium of about 31% to Allegro's last closing price of $26.78.

Allegro provides power management systems used in EVs and traditional vehicles, as well as chips essential for systems that assist vehicles brake and steer.

The company had a market capitalization of about $4.9 billion, as of Tuesday's close, according to data compiled by LSEG.

Automotive chipmakers have faced weak demand as automakers struggled to clear excess chip inventory built up during the COVID-19 pandemic while buyers pulled back on big purchases due to uncertain macroeconomic backdrop. Onsemi last month forecast first-quarter revenue below Wall Street expectations.

Onsemi's stock fell more than 24% last year while Allegro shares fell 28% during the same period.

(Reporting by Pretish M J in Bengaluru; Editing by Mrigank Dhaniwala)