Trump Blocks $3M Chip Deal Over Security Concerns
U.S. President Donald Trump has ordered the cancellation of a proposed $3 million acquisition of chip and photonics assets by American firm HieFo from Emcore, citing national security and China-related risks. The deal, originally completed in 2024, involved Emcore’s computer chip operations and indium-phosphide wafer fabrication business.
National Security, China Concerns Cited
In a White House executive order, Trump said the transaction could pose national security threats because HieFo is controlled by a citizen of China. He directed HieFo to divest all interests in the Emcore assets within 180 days, effectively prohibiting the deal from moving forward. The Committee on Foreign Investment in the United States (CFIUS) had flagged the acquisition during its review, identifying potential risks to U.S. security. The specific nature of the security threat was not publicly detailed by officials.
Broader Tech Tensions
The move reflects ongoing concerns in Washington about foreign, particularly Chinese, involvement in U.S. technology and defence sectors, even for relatively small transactions. Advanced semiconductor technology remains central to these tensions, with U.S. policy increasingly focused on protecting sensitive technologies and reducing strategic vulnerabilities.
