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Trump Blocks Chip Acquisition Citing National Security

  • tech360.tv
  • 1 hour ago
  • 1 min read

President Donald Trump blocked HieFo Corp's USD 3 million acquisition of Emcore assets, citing national security and concerns related to China. The White House released an order prohibiting the transaction involving the New Jersey-based aerospace and defence specialist.


Two men in suits gesture a handshake, standing between U.S. and Chinese flags. Dark curtain backdrop, formal setting, neutral expressions.
Credit: THE WHITE HOUSE

Trump stated that HieFo was "controlled by a citizen of the People's Republic of China," leading him to believe the 2024 acquisition could "threaten to impair the national security of the United States." The order did not name the individual or detail the specific concerns.


The President's order explicitly prohibited the transaction and mandated HieFo divest all interests and rights in Emcore assets, wherever located, within 180 days.


Man in a suit speaks at a podium with a seal, in an ornate room. Behind, a naval art piece is displayed. Warm lighting enhances the scene.
Credit: THE WHITE HOUSE

Following Trump's order, the Treasury Department confirmed that the Committee on Foreign Investment in the United States had identified a national security risk during its investigation of the deal. The specific nature of this risk was not detailed in the statement.


Emcore, which was publicly traded at the time of the deal but later became private, stated that HieFo purchased its chips business and indium-phosphide wafer-fabrication operations for USD 2.92 million.


HieFo previously disclosed that it was co-founded by Genzao Zhang, a former Emcore vice president of engineering, and Harry Moore, whose LinkedIn profile describes him as a former senior sales director at Emcore.

  • President Donald Trump blocked HieFo Corp's USD 3 million acquisition of Emcore assets.

  • The decision cited national security and concerns related to China.

  • Trump stated HieFo was "controlled by a citizen of the People's Republic of China."


Source: REUTERS

 
 
 

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