PRESIDENT BLOCKS $2.9M CHIP SALE OVER SECURITY CONCERNS

Key Findings

President Trump ordered the divestment of a $2.9 million chips deal between U.S. firm Emcore and Chinese-linked company HieFo Corp.
Trump cited national security risks tied to HieFo's control of Emcore's chip technology and its links to China.
The deal was initially approved in 2024 but later blocked in 2026 after a government review.
The blocked technology includes indium phosphide wafers used for advanced internet, laser, and military applications.
The move is part of the Trump administration's broader efforts to prevent transfer of sensitive U.S. technology to China.

Emcore Corporation is a U.S. aerospace and defense technology company known for inertial navigation systems, photonic integrated chips (PICs), and optical technologies.
In 2024, Emcore sold its chip and wafer operations to HieFo Corp, a Delaware-based company that emerged from a management buyout of Emcore assets.
HieFo is controlled by a Chinese citizen, raising concerns about potential Chinese access to the sensitive chip technology.

The Trump administration has taken an increasingly tough stance on preventing China from acquiring advanced U.S. technologies, particularly in strategic sectors like semiconductors.
By blocking this relatively small $2.9 million deal, the White House is signaling its intent to closely scrutinize any transactions that could give China access to cutting-edge American capabilities.
The order requires complete divestment of the Emcore assets by HieFo within 180 days, under close oversight by the Committee on Foreign Investment in the United States (CFIUS).

The blocked technology includes indium phosphide (InP) wafers, a specialized semiconductor material used to produce advanced chips for telecommunications, data centers, sensing, and AI networking.
InP chips have superior performance for high-speed optical communications compared to traditional silicon chips, making them critical for emerging technologies.
Emcore was a leading producer of these advanced InP chips and wafers, which are tightly controlled for national security reasons due to their military and strategic applications.

This action follows a pattern of the Trump administration closely monitoring and restricting technology transfers to China, even for relatively small deals.
Experts expect continued heightened scrutiny of any Chinese involvement in U.S. semiconductor and other high-tech industries on national security grounds.
The 180-day divestment timeline and CFIUS oversight signals the administration's determination to fully unwind this transaction and prevent any Chinese control over the sensitive Emcore technology.

https://securityaffairs.com/186473/security/president-trump-blocks-2-9m-emcore-chip-sale-over-security-concerns.html
https://inspirepreneurmagazine.com/world/america/trump-blocks-2-9m-chip-deal-with-china-over-security-risks/
https://www.youtube.com/watch?v=PgjnOwI4fts