Trump Blocks $2.9M Chip Deal in Security Shock Move
Trump orders divestment of a $2.9M chip deal, citing U.S. national security risks tied to China-linked ownership and advanced AI technology.
WASHINGTON — President Donald Trump on Friday ordered the unwinding of a $2.9 million computer chip deal, saying he believes that if the current owner, HieFo Corp., retains control of the technology, it would pose a threat to U.S. national security interests.
The executive order brought renewed attention to a business deal that had received little notice when it was announced in May 2024 during President Joe Biden's administration. In that deal, aerospace and defense specialist Emcore Corp. sold its computer chip and wafer fabrication operations to HieFo for $2.92 million — a price that included the assumption of approximately $1 million in liabilities.
But now Trump is demanding that HieFo divest the technology within 180 days, saying there is "credible evidence" that the current owner is a citizen of the People's Republic of China.
HieFo was founded by Dr. Jianzao Zhang and Harry Moore. According to a press release issued after the deal closed, the technology acquired from Emcore was to be overseen by essentially the same team of employees in Alhambra, California.
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Zhang, who was vice president of engineering at Emcore before becoming CEO of HieFo, promised to "advance the most innovative and disruptive solutions" with the technology, which is designed for purposes such as artificial intelligence.
HieFo did not immediately respond to a request for comment on Trump's order.
Emcore was a publicly traded company at the time of the HieFo deal, but it was taken private last year by investment firm Charlesbank Capital Partners.
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