Trump Blocks $2.9 Million HieFo-Emcore Chip Deal Over China-Linked National Security Concerns
President Donald Trump signed an executive order on Friday blocking a semiconductor deal between HieFo Corp. and Emcore Corp., citing national security concerns related to China.
Trump said there is “credible evidence” that “HieFo Corporation, a company organized under the laws of Delaware (HieFo) and controlled by a citizen of the People's Republic of China…might take action that threatens to impair the national security of the United States.”
In 2024, the companies announced that they had completed a deal to sell New Jersey-based Emcore’s chips business and indium phosphide wafer fabrication operations for about $2.9 million.
Additionally, the executive order mandates that HieFo divest all interests and rights in the Emcore assets within 180 days.
The Committee on Foreign Investment in the United States (CFIUS) will oversee enforcement, ensuring compliance with the national security directive.
Trump’s move is the latest aimed at cracking down on Chinese access to advanced semiconductor technologies. Last month, his administration announced plans to impose tariffs on Chinese semiconductor imports in June 2027.
In 2017, CFIUS recommended blocking several acquisitions, including Oregon-based Lattice Semiconductor (NASDAQ:LSCC), citing similar national security concerns, showing that executive intervention in foreign corporate deals has long been part of U.S. policy to protect critical technologies.
See Also: China’s Rerouting Boom: How Major Firms Are Bypassing US Tariffs Impact
U.S. Counters China’s Tech Reach
Trump’s recent move adds to a series of actions taken by the U.S. government to counter China’s technological advancements.
In September 2025, Trump extended the deadline for TikTok‘s divestment from Chinese parent company ByteDance, following discussions with Chinese President Xi Jinping.
Meanwhile, U.S. lawmakers have pushed for legislation to prevent the Trump administration from granting China broader access to advanced artificial intelligence chips from companies such as Nvidia Corp (NASDAQ:NVDA) and Advanced Micro Devices, Inc (NASDAQ:AMD) for the next 2.5 years.
Trump’s decision to block the HieFo-Emcore deal is the latest in a series of actions aimed at maintaining U.S. technological superiority and countering China’s growing influence in the global tech industry.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.