Trump halts a $3 million chip asset deal, citing national security risks and alleged China linked control of HieFo Corp.
President Donald Trump has blocked a proposed chips related deal involving US photonics firm HieFo Corp, citing national security and China related concerns, in a move underscoring Washington’s tightening scrutiny of foreign linked investments in sensitive technologies.
In an order released by the White House, Trump prohibited HieFo’s roughly $3 million acquisition of assets from New Jersey based aerospace and defence specialist Emcore. The president said HieFo was controlled by a citizen of the People’s Republic of China and that its 2024 purchase of Emcore’s businesses raised concerns it could take actions that threaten US national security. The order did not identify the individual involved or provide specific details on the perceived risks.
“The transaction is hereby prohibited,” Trump said, directing HieFo to divest all interests and rights in the Emcore assets within 180 days.
The Committee on Foreign Investment in the United States flagged a national security risk during its review of the transaction, according to the US Treasury Department, though officials did not elaborate on the nature of the threat identified. Neither HieFo nor Emcore responded immediately to requests for comment.
Emcore, which was publicly listed at the time of the deal and has since been taken private, previously said HieFo had agreed to buy its chips business and indium phosphide wafer fabrication operations for $2.92 million. HieFo has said it was co-founded by Genzao Zhang, a former Emcore vice president of engineering, and Harry Moore, whose LinkedIn profile lists him as a former senior sales director at Emcore.
The decision highlights continued US efforts to restrict Chinese linked involvement in critical semiconductor and defence related technologies.
