Archive · 3 Jan 2026
Trump Blocks $2.9M Semiconductor Deal Over Security Concerns
President Trump stopped a deal where a company called HieFo was buying computer chip technology from Emcore.
He said it was a security risk because the owner of HieFo is from China.
Trump gave HieFo 180 days to sell the technology back.
The deal was worth $2.92 million and included some debts.
The technology is used for things like artificial intelligence.
Emcore is now owned by a private investment company.
The Committee on Foreign Investment in the United States (CFIUS) will oversee the divestment to ensure it follows the rules.
President Trump blocked a $2.92 million deal involving HieFo Corp acquiring semiconductor assets from Emcore Corp.
The deal was blocked due to national security concerns over potential access to intellectual property and diversion of chip supply.
HieFo has been ordered to divest the acquired technology within 180 days, overseen by CFIUS.
The current owner of HieFo is a citizen of the People's Republic of China.
Emcore was taken private by Charlesbank Capital Partners last year.
- Who
- US President Donald Trump and HieFo Corp
- What
- Blocking of a $2.92 million semiconductor deal
- When
- Friday (specific date not mentioned)
- Where
- United States
- Why
- National security concerns over potential access to intellectual property and diversion of chip supply
National Security
Business Interests
Deal Blocking
National Security
The deal was blocked to prevent potential access to sensitive semiconductor technology by a Chinese-linked company, which could pose a national security risk.
Business Interests
The blocking of the deal disrupts business operations and investments, potentially harming economic interests.
- Amount
- $2.92 million
- Companies Involved
- HieFo Corp and Emcore Corp
- Assets
- Semiconductor-related assets and technology
- Divestment Deadline
- 180 days
- National Security Concern
- Potential access to intellectual property and diversion of chip supply
- CFIUS Involvement
- Committee on Foreign Investment in the United States
- Founders of HieFo
- Dr. Genzao Zhang and Harry Moore
- Emcore's New Owner
- Charlesbank Capital Partners
Sources
Donald Trump blocks $2.9 million Biden-era semiconductor deal citing security reasons
Trump orders divestment in $2.9 million chips deal to protect US security interests
US President Donald Trump Blocks Chinese-Linked Firm's Acquisition Of American Semiconductor Assets Over Security Concerns
