President Donald Trump has ordered the reversal of a $2.9 million chip deal from the Biden era, he now says, that poses a risk to U.S. national security if left in its current hands.
In an executive order issued on Friday, Trump directed HieFo Corp. to relinquish the computer chip and wafer fabrication technology it acquired from Emcore Corp., giving the company 180 days to divest the assets. The order cites “credible evidence” that HieFo’s current owner is a citizen of the People’s Republic of China, a designation the administration says raises security concerns tied to sensitive technology.
The transaction, announced in May 2024, attracted little public scrutiny at the time. Emcore, an aerospace and defense-focused company, agreed to sell its chip manufacturing and fabrication operations to HieFo for $2.92 million. The deal also transferred roughly $1 million in liabilities to the buyer.
HieFo was founded by Dr. Genzao Zhang and Harry Moore. Zhang previously served as Emcore’s vice president of engineering before taking over as chief executive of HieFo. After the sale closed, a company press release said the newly acquired technology would remain under the direction of much of the same workforce based in Alhambra, California.
At the time, Zhang said he intended to “continue the pursuit of the most innovative and disruptive solutions,” noting that the technology would be developed for uses that included artificial intelligence.
HieFo did not immediately respond to a request for comment regarding Trump’s divestment order, AP indicated in a report.
Emcore, which was publicly traded when the HieFo deal was finalized, was taken private last year following its acquisition by investment firm Charlesbank Capital Partners.
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