President Donald Trump has ordered the reversal of a US$2.9 million semiconductor transaction approved under the previous administration, citing national security concerns linked to China.
In an executive order issued on Friday, Trump directed HieFo Corp. to divest computer chip and wafer fabrication technology it acquired from Emcore Corp., granting the company 180 days to complete the process. The order stated there was “credible evidence” that HieFo’s current owner is a citizen of the People’s Republic of China, raising concerns over control of sensitive U.S. technology.
The transaction, announced in May 2024, involved Emcore selling its chip manufacturing and fabrication assets to HieFo for US$2.92 million, with the buyer also assuming approximately $1 million in liabilities. At the time, the deal drew limited public attention.
Emcore, which focuses on aerospace and defence technologies, agreed to the sale while it was still publicly traded. The company was later taken private following its acquisition by investment firm Charlesbank Capital Partners.
HieFo was founded by Dr. Genzao Zhang and Harry Moore. Zhang previously served as Emcore’s vice president of engineering before becoming HieFo’s chief executive. Following the acquisition, HieFo said the technology would remain under the direction of much of the existing workforce based in Alhambra, California.
In comments released at the time of the deal, Zhang said the company would continue developing “innovative and disruptive solutions,” with applications including artificial intelligence.
HieFo has not publicly responded to the divestment order. According to reports cited by the Associated Press, the Trump administration considers continued foreign ownership of the assets to pose an unacceptable risk to U.S. national security due to the strategic importance of semiconductor technology.
