Yazılar

Trump Blocks Chip Deal, Citing National Security and China Concerns

/in /tarafından

Donald Trump on Friday blocked a $3 million deal in which U.S. photonics firm HieFo Corp sought to acquire assets from New Jersey-based aerospace and defense supplier Emcore, citing national security and China-related risks.

In an order released by the White House, Trump said HieFo was “controlled by a citizen of the People’s Republic of China,” raising concerns that the transaction could threaten U.S. national security. He ordered HieFo to divest all interests in the Emcore assets within 180 days.

The decision followed a review by the Committee on Foreign Investment in the United States, which identified national security risks linked to the deal, according to the U.S. Treasury Department. Officials did not specify the nature of those risks.

Emcore has said HieFo acquired its chip business and indium-phosphide wafer fabrication operations for about $2.92 million. The company was publicly traded at the time of the transaction and has since gone private.

HieFo previously said it was co-founded by Genzao Zhang, a former Emcore vice president of engineering, and Harry Moore, a former senior sales director at Emcore. Neither company immediately responded to requests for comment following Trump’s order.

Cerebras IPO Delayed as US National Security Review Continues

/in /tarafından

Cerebras Systems, a California-based AI chipmaker, has experienced further delays in its highly anticipated IPO due to an ongoing national security review by the Committee on Foreign Investment in the United States (CFIUS), sources familiar with the matter confirmed. The delay comes as the company waits for the White House to fill key positions and for CFIUS to conclude its review of a $335 million investment from Abu Dhabi-based cloud computing and AI company G42.

The delay marks a significant hurdle for Cerebras, which has been seeking to go public despite the uncertainty surrounding the approval of G42’s investment. G42’s past ties to China, particularly its connection to Huawei, have drawn scrutiny in Washington. However, the deal had appeared poised for approval late last year before the change in U.S. leadership.

CFIUS, which reviews foreign investments for national security risks, remains cautious about deals involving foreign companies with Chinese links. With the Biden administration’s expansion of CFIUS enforcement, corporate executives have found the regulatory environment less conducive to dealmaking than initially expected.

Despite the ongoing review, Cerebras executives remain optimistic that the investment will eventually be approved, and they intend to proceed with the IPO once the regulatory process is completed. The company’s valuation has nearly doubled since G42’s investment commitment last year, and the IPO remains a crucial step for Cerebras in securing funding for its future growth.

Chinese Hackers Breach U.S. Agency Overseeing Foreign Investments

/in /tarafından

Chinese hackers have reportedly breached the Committee on Foreign Investment in the U.S. (CFIUS), a crucial agency responsible for evaluating foreign investments for potential national security threats, CNN reported on Friday. The hack is part of a broader cybersecurity breach into the U.S. Treasury Department’s unclassified systems, according to sources familiar with the matter.

The breach’s timing was not specified, and neither the U.S. Treasury Department nor CFIUS provided immediate responses to inquiries from Reuters outside regular business hours. The incident raises concerns about the security of sensitive data related to foreign investments and national security assessments conducted by CFIUS.