Apr 12, 2017

Xcerra deal will test U.S. policy on Chinese chips

Dan Primack

Sino IC Capital of China this agreed to acquire Xcerra Corp., a Massachusetts-based semiconductor testing company. The deal is valued at $580 million in cash, or $10.25 per share.

Why it matters: U.S. regulators have been particularly finicky when it comes to Chinese takeovers of domestic chip companies, and approval/disapproval of this deal could be viewed as a Trump-era guidepost (alongside a previously-announced purchase of Lattice Semiconductor, which remains in the midst of regulatory review). The market's early read isn't terribly optimistic, as Xcerra shares haven't even hit the $10 mark since the deal was announced.

Bottom line: "Shortly before leaving office in January, former President Obama made public a report by advisors and semiconductor industry insiders that warned of the threat posted to the U.S. semiconductor industry by China's aggressive moves to become a global player in the chip space, including the acquisition of U.S. firms." ― Dylan McGrath, EE Times

Go deeper

Amy Harder

Texas oil regulators poised to debate historic production controls

Workers extracting oil from oil wells in the Permian Basin in Midland, Texas. Photo: Benjamin Lowy/Getty Images

Texas oil regulators are likely to hold a hearing in April on whether to take the historic step to curb the state’s oil production amid a global market collapse fueled by the coronavirus.

Driving the news: Ryan Sitton, one of three commissioners of the Texas Railroad Commission, which oversees state oil production, told Axios that a hearing will likely be held soon in response to a renewed request earlier Monday from two oil companies to limit production as one way to stem the steep slide in global oil prices.

Go deeperArrow19 mins ago - Energy & Environment
Marisa Fernandez

More states issue stay-at-home orders as coronavirus crisis escalates

Data: Axios reporting; Map: Danielle Alberti/Axios

Maryland Gov. Larry Hogan, Virginia Gov. Ralph Northam and District of Columbia Mayor Muriel Bowser issued stay-at-home orders on Monday, with exceptions for residents engaged in essential services, including health care and government functions. Arizona Gov. Doug Ducey announced a similar directive on Monday evening.

The big picture: The states and territory are the latest to announce policies to enforce social distancing, which have affected almost 250 million Americans. More than 1.5 billion people worldwide had been asked to stay home as of last week.

Go deeperArrowUpdated 37 mins ago - Health
Rebecca Falconer, Orion Rummler, Marisa Fernandez

U.S. coronavirus updates: 3 out of 4 Americans forced to stay home

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

At least 30 state governors and the District to Columbia have ordered their residents to stay home to promote social distancing and limit community spread from the coronavirus pandemic.

The big picture: Those states account for about 3/4 of the American population, the N.Y. Times notes. More cities like Boston, Detroit, New Orleans and Philadelphia, are reporting an influx of cases, prompting states to take stronger actions.

Go deeperArrowUpdated 59 mins ago - Health