Trump blocks chips deal over security and China-related concerns

President Trump ordered HieFo to divest Emcore assets and banned the $3 million acquisition, citing national security and China-related concerns; the Treasury said CFIUS identified a national security risk.

President Donald Trump issued an order prohibiting HieFo Corp's acquisition of assets from Emcore and required divestment of those assets. The White House said the action was taken on national security and China-related grounds. The order stated HieFo was controlled by a citizen of the People's Republic of China but did not name that individual or detail the specific concerns. The Treasury Department said the Committee on Foreign Investment in the United States identified a national security risk during its review. Key points: - The president prohibited HieFo's purchase of Emcore assets and ordered divestment within 180 days. - The deal involved Emcore's chips business and indium-phosphide wafer-fabrication operations, which HieFo bought for about $2.92–3 million. - The White House statement said HieFo was "controlled by a citizen of the People's Republic of China" but did not identify the person. - The Treasury said CFIUS found a national security risk, and no further specifics were released. Summary: The immediate impact is that the acquisition is banned and HieFo must divest the Emcore assets within 180 days; the Treasury reported that CFIUS identified a national security risk. Further details about the nature of that risk were not provided in the announcements.