US EditionPresident Trump orders divestment in $2.9 million chips deal to protect US security interests
President Trump ordered HieFo to divest Emcore's chip assets within 180 days citing national security risks due to Chinese ownership, blocking a $2.9 million semiconductor acquisition.
- On Friday, President Donald Trump ordered cancelling HieFo Corp.'s $2.9 million chip acquisition, citing national-security concerns that the transaction threatened U.S. security.
- The purchase closed on April 30, 2024, when Emcore Corp., New Jersey-based, sold its chips and wafer operations to HieFo Corp. for $2.92 million, including about $1 million in liabilities, after being taken private last year by Charlesbank Capital Partner.
- HieFo was founded by Dr. Genzao Zhang and Harry Moore, with plans for the technology to be overseen by the same team in Alhambra, California, while Zhang pledged AI-focused development.
- The order bars HieFo from owning the assets comprising the digital chips and related wafer design, fabrication, and processing businesses and requires divestment within 180 days, citing `credible evidence` of ownership ties as cited by the administration.
- The executive action cast a spotlight on a deal that drew scant attention when announced in May 2024 during the Biden administration, and HieFo did not immediately respond to requests for comment.
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KurierPreviously, CFIUS, the US authority responsible for examining foreign investments, had identified security risks in the transaction
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Trump Blocks $2.9 Million HieFo-Emcore Chip Deal Over China-Linked National Security Concerns - Advanced Micro Devices (NASDAQ:AMD), Lattice Semiconductor (NASDAQ:LSCC)
Trump blocks $2.9 million HieFo-Emcore semiconductor deal, citing national security concerns related to China.
Trump blocks HieFo from acquiring Emcore chip assets
President Donald Trump on Friday sought to reverse a multimillion-dollar deal the White House said allowed a Chinese-run company in Delaware to gain access to valuable semiconductor assets. The president’s executive order cites national security concerns as the basis for blocking HieFo Corporation from acquiring digital chips made by Emcore Corporation, a New Jersey aerospace and defense company. The move seeks to unwind the $2.92 million merger…
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