Trump Signs Order to Block Chinese-Controlled Chip Deal
The directive takes aim at HieFo—a Delaware-registered entity controlled by a Chinese national—and its acquisition of Emcore properties tied to digital chips, along with wafer design, fabrication, and processing capabilities, according to a White House announcement.
The transaction in question, finalized in 2024, involved a $2.92 million transfer of Emcore's New Jersey chip manufacturing operations and indium phosphide wafer production facilities to HieFo, the companies previously disclosed.
According to the executive order, the deal "threatens to impair the national security of the United States," representing the administration's newest move to restrict Chinese acquisition of cutting-edge semiconductor technology.
Under the order's terms, HieFo must complete divestment within 180 days, though the Committee on Foreign Investment in the United States—the federal body responsible for scrutinizing foreign transactions involving American companies for security vulnerabilities—retains authority to approve a deadline extension.
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