Aug 15 (Reuters) - U.S. semiconductor testing company Cohu Inc is trying to block the sale of rival Xcerra Corp to a Chinese government-controlled fund citing national security concerns, the Wall Street Journal reported on Tuesday.
Cohu sent its analysis of the risks related to the proposed sale to the Committee on Foreign Investment in the United States (CFIUS), according to documents and correspondence reviewed by the Journal. on.wsj.com/2vG8qlB
The CFIUS, a government panel that reviews acquisitions by foreign entities for potential national security risks, has cracked down on technology deals related to the semiconductor industry.
“The allegations Cohu make are false, as Xcerra does not possess critical IP from any customer. Semiconductor companies do not share their critical information with automatic test or handler vendors,” Xcerra said in an e-mail to Reuters.
A unit of a large semiconductor investment fund linked to the Chinese state in April agreed to buy Xcerra for $580 million in cash.
Chinese suitors have faced intense scrutiny from regulators in their pursuit of U.S. chipmakers, resulting in some failed deals in recent years.
Reuters could not immediately reach Cohu, the CFIUS and the Chinese fund for comment. (Reporting by Mekhla Raina and Sangameswaran S in Bengaluru; Editing by Sai Sachin Ravikumar)