President Trump orders divestment in $2.9 million chips deal to protect US security interests
President Donald Trump on Friday ordered the cancellation of a $2.9 million computer chip deal that he said threatened U.S. security interests if current owner HieFo Corp. remained in control of the technology.
WASHINGTON– President Donald Trump on Friday ordered the cancellation of a $2.9 million computer chip deal that he said threatened U.S. security interests if current owner HieFo Corp. remained in control of the technology.
The executive order highlighted a trade deal that drew little attention when it was announced in May 2024 under President Joe Biden’s administration. The deal involved aerospace and defense specialist Emcore Corp. selling its computer chip and wafer manufacturing operations to HieFo for $2.92 million – a price that included the assumption of approximately $1 million in liabilities.
But Trump is now demanding that HieFo divest this technology within 180 days, citing “credible evidence” that the current owner is a citizen of the People’s Republic of China.
HieFo was founded by Dr. Genzao Zhang and Harry Moore. According to a press release issued after the deal closed, projects relating to the technology acquired from Emcore were to be overseen largely by the same team of employees in Alhambra, California.
Zhang, who was vice president of engineering at Emcore before becoming CEO of HieFo, pledged to “continue the pursuit of the most innovative and disruptive solutions” with technology designed for purposes that would include artificial intelligence.
HieFo did not immediately respond to a request for comment on Trump’s order.
Emcore was a publicly traded company at the time of the HieFo deal, but it was taken private last year by investment firm Charlesbank Capital Partner.
