WASHINGTON: US President Donald Trump has blocked a deal involving American semiconductor assets and a Chinese-linked company, citing national security concerns.
In an executive order issued on Friday, Trump barred HieFo Corporation from acquiring certain chip-related assets of Emcore Corporation. The order said there was “credible evidence” that the transaction could threaten the national security of the United States.
HieFo, a Delaware-based company controlled by a Chinese national, had acquired assets tied to digital chips as well as wafer design, fabrication, and processing businesses of New Jersey-based Emcore. The acquisition was completed on April 30, 2024.
Trump said existing legal authorities, outside Section 721 of the Defense Production Act of 1950, did not provide “adequate and appropriate authority” to address the risks posed by the transaction.