A company controlled by a Chinese national was ordered by U.S. President Donald Trump on Friday to unwind a $2.9 million acquisition of chip assets from a U.S. manufacturer, citing national security concerns.
The White House said in an executive order that HieFo Corporation, incorporated in Delaware, was “controlled by a citizen of the People’s Republic of China.”
HieFo acquired the digital chips and related wafer design, fabrication, and processing businesses of New Jersey-based Emcore on April 30, 2024, which could “impair the national security of the United States,” the White House said.
The Treasury Department said in a separate statement that the assets also included a semiconductor manufacturing facility.
The potential diversion of the supply of indium phosphide chips manufactured by Emcore’s digital chips business away from the U.S. was also identified as a national security risk, the Treasury Department added.
