Trump Blocks Chip Deal, Citing National-Security Risk
Washington, Jan 2 — U.S. President Donald Trump on Friday halted HieFo Corp’s roughly USD 3 million purchase of assets belonging to New Jersey-based defense supplier Emcore, citing national-security concerns linked to China.


A White House statement said HieFo is “controlled by citizens of the People’s Republic of China” and concluded the transaction could threaten U.S. national security. Trump ordered HieFo to divest all interests in the Emcore assets within 180 days.


The Committee on Foreign Investment in the United States (CFIUS) identified national-security risks during its review but provided no further details.
Emcore was publicly traded before the deal and has since been taken private. HieFo earlier said the acquired operations included Emcore’s chip and indium-phosphide wafer manufacturing business.