Introduction: The acquisition of Xcerra, a Massachusetts-based semiconductor testing company, by Chinese-owned private equity firm Sino IC Capital raised concerns about the potential impact of foreign ownership on U.S. national security. This article will examine the people behind the Xcerra private equity deals and their role in the intersection of finance law, national security law, sensitive technology, and national security.
Background: Xcerra was acquired by Sino IC Capital in 2018 in a deal worth $580 million. The acquisition was reviewed by the Committee on Foreign Investment in the United States (CFIUS) due to concerns about Chinese ownership of a company that designs and manufactures critical components in a wide range of technologies.
People Behind the Xcerra Private Equity Deals: Sino IC Capital is a private equity firm based in China that focuses on investments in the semiconductor industry. The company was founded in 2014 by Nanchang Fang, a former executive at a Chinese state-owned semiconductor company. In addition to the acquisition of Xcerra, Sino IC Capital has made several other significant investments in the U.S. semiconductor industry.
David Tacelli was the CEO of Xcerra at the time of the acquisition. Tacelli had previously served as the CEO of Verigy, a semiconductor testing company that was acquired by Advantest Corporation in 2011. Tacelli has also held executive positions at several other semiconductor companies, including Teradyne and Agilent Technologies.
Thomas J. Campbell was the chairman of Xcerra’s board of directors at the time of the acquisition. Campbell is a former U.S. congressman who represented California’s 15th congressional district from 1995 to 2001. After leaving Congress, Campbell served as the dean of the Chapman University School of Law in Orange, California.
Finance Law and National Security Law: The acquisition of Xcerra by Sino IC Capital was subject to review by CFIUS, which is responsible for reviewing transactions that could have national security implications. CFIUS is authorized to block transactions or require conditions to be met in order to mitigate national security concerns.
Sensitive Technology and National Security: Semiconductors are critical components in a wide range of technologies, including smartphones, computers, and military equipment.
As a result, there are concerns about the potential national security implications of foreign ownership of companies that design and manufacture semiconductors.
Conclusion: The acquisition of Xcerra by Sino IC Capital raises important questions about the intersection of finance law, national security law, sensitive technology, and national security. While foreign investment in the U.S. technology industry can bring much-needed capital and expertise, it is important to carefully consider the potential implications of such investments for U.S. national security. Moving forward, it will be important for policymakers to strike the right balance between encouraging investment and protecting national security interests.
