Trump executive order blocks semiconductor deal citing national security
Jan. 2 (UPI) — President Donald Trump on Friday signed an executive order stopping a semiconductor chips deal between U.S. and Chinese companies citing national security concerns.
The $2.92 million deal would have seen HieFo Corp., a Delaware-based company operated out of China, acquire the semiconductor chips and wafer fabrication businesses of New Jersey’s EMCORE Corp. The two companies announced plans for the deal in 2024.
“There is credible evidence that leads me to believe that HieFo Corporation, a company organized under the laws of Delaware (HieFo) and controlled by a citizen of the People’s Republic of China … might take action that threatens to impair the national security of the United States,” Trump’s order reads.
The executive order, issued under the Defense Production Act, prevents HieFo from having any interest or rights in Encore assets and orders HieFo to divest from Encore within 180 days. The divestment is expected to be overseen by the Committee on Foreign Investment in the United States.