Trump Orders Reversal of $2.9M Chip Deal Over U.S. Security Concerns.
President Donald Trump on Friday directed that a $2.9 million computer chip deal involving HieFo Corp be unwound, citing threats to U.S. national security if the company retained control of the technology. The deal, first announced in May 2024 during the Biden administration, had Emcore Corp, an aerospace and defense firm, selling its computer chips and wafer fabrication operations to HieFo for $2.92 million, which included about $1 million in assumed liabilities.
Trump’s executive order gives HieFo 180 days to divest the technology, noting “credible evidence” that one of the owners is a citizen of China.
HieFo, founded by Genzao Zhang and Harry Moore, planned to continue using the technology under largely the same California-based team. Zhang, former VP of engineering at Emcore and now CEO of HieFo, had said the technology would be used for innovation including artificial intelligence.
Emcore, previously publicly traded, was taken private last year by Charlesbank Capital Partners. HieFo has not commented on the executive order.
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