Trump orders Chinese-controlled firm to unwind chip asset deal, citing national security risks
CNBC••general
Key Points:
- U.S. President Donald Trump ordered HieFo Corporation, controlled by a Chinese national, to unwind its $2.9 million acquisition of Emcore's chip assets due to national security concerns.
- The Treasury Department identified risks related to the potential diversion of indium phosphide chips and unauthorized access to Emcore's intellectual property and proprietary technology.
- The acquisition was not reported to the Committee on Foreign Investment in the United States (CFIUS), triggering a review and subsequent divestment order requiring HieFo to sell the assets within 180 days.
- HieFo, founded by Genzao Zhang and Harry Moore, claimed the acquisition would maintain operations at Emcore’s California facility and retain key technical staff.
