President Trump Orders Divestment in $2.9 Million Chip Deal to Safeguard U.S. Security

Trump Orders Divestment in $2.9 Million Chip Deal Citing U.S. Security Concerns.

U.S. President Donald Trump on Friday ordered the reversal of a $2.9 million computer chip deal, citing threats to national security if the current owner, HieFo Corp, retained control of the technology.

The deal, initially announced in May 2024 during President Joe Biden’s administration, involved aerospace and defense company Emcore Corp selling its computer chips and wafer fabrication operations to HieFo for $2.92 million, including roughly $1 million in liabilities.

Trump’s executive order requires HieFo to divest the technology within 180 days, citing “credible evidence” that one of the current owners is a citizen of the People’s Republic of China.

HieFo was founded by Genzao Zhang and Harry Moore. Zhang, formerly vice president of engineering at Emcore and now HieFo’s CEO, had pledged to continue pursuing “innovative and disruptive solutions,” including technology for artificial intelligence.

Plans for the acquired technology were reportedly to be managed by largely the same team of employees at Alhambra, California. HieFo has not yet responded to requests for comment regarding Trump’s order.

At the time of the sale, Emcore was publicly traded but was taken private last year by investment firm Charlesbank Capital Partners.