US President Trump Blocks Chip Deal Citing National Security Fears Amid China Concerns

In a move aimed at protecting national security, US President Donald Trump has blocked the $3 million acquisition of Emcore's assets by HieFo Corp, a US photonics firm. The decision comes after an investigation by the Committee on Foreign Investment in the United States identified potential national security risks. According to the White House, Trump cited concerns over HieFo's ties to China, stating that the company may 'take action that threatens to impair the national security of the United States.' The order requires HieFo to divest its interests in Emcore's assets within 180 days. Emcore, a specialist in aerospace and defense, had previously sold its chips business and indium-phosphide wafer-fabrication operations to HieFo for $2.92 million. The deal, which involved the transfer of assets from a publicly traded to a privately owned company, has raised concerns over the potential for sensitive technology to fall into the wrong hands. The Treasury Department confirmed the national security risk, but did not provide further details. HieFo and Emcore have yet to comment on the decision, which was announced by Trump on Friday.