Trump Blocks Chip Deal, Citing National Security and China Concerns

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.