Trump blocks Chinese-linked firm's US chip acquisition on security grounds
US President Donald Trump has signed an executive order blocking the acquisition of semiconductor-related assets from US firm Emcore Corp. by the Chinese-controlled company HieFo Corp., citing national security risks. The order, issued Friday, represents the latest move in Washington's campaign to restrict Chinese access to advanced American chip technology.
Targeting a Chinese-controlled Delaware entity
The White House stated that HieFo, though incorporated in Delaware, was formed and is controlled by a Chinese citizen. The order specifically targets the firm's planned purchase of Emcore assets involved in digital chip design, fabrication, and wafer processing operations.
Order cites threat to national security
The executive order asserts that the proposed transaction "threatens to impair the national security of the United States." It mandates HieFo to divest the assets within 180 days, unless the Committee on Foreign Investment in the United States (CFIUS) grants an extension. The deal, valued at $2.92 million, involved Emcore's New Jersey-based chip business and indium phosphide wafer fabrication operations, which were completed in 2024.
Context of ongoing US-China tech rivalry
This action fits within a broader pattern of heightened US scrutiny and restriction of Chinese investments in sensitive technologies, particularly semiconductors. The Trump administration has consistently sought to curb Beijing's ability to acquire advanced technological capabilities deemed critical to US economic and military competitiveness.
Reklam yükleniyor...
Reklam yükleniyor...
Comments you share on our site are a valuable resource for other users. Please be respectful of different opinions and other users. Avoid using rude, aggressive, derogatory, or discriminatory language.