Trump administration blocks chip deal over national security, China risks

President Donald Trump in a recent move blocked US photonics firm HieFo Corp from acquiring $3 million worth of assets in New Jersey-based aerospace and defense specialist Emcore over the concerns related to China dominance and national security.

The White House issued an official order in which Trump cited that HieFo was in the possession of a “citizen of the People’s Republic of China," as reported by Reuters.

In 2024, HeiFo acquired the parts of Emcore’s businesses. The President believes that this ownership could allow the company to risk the national security of the United States.

Trump said, "The Transaction is hereby prohibited, ordering HieFo to divest all interests and rights in the Emcore Assets, wherever located, within 180 days.”

The order did not shed light on the further details regarding specific individuals and Trump’s concerns.

However, the national security risk was identified by the Committee on Foreign Investment in the US. The statement also did not specify the nature of risk tied to national security.

According to Emcore, HieFO purchased its indium-phosphide wafer-fabrication operations and chips business for $2.92 million.

Co-founded by Genzao Zhang and Harry Moore, HeiFO has not yet commented on the following Trump’s order.