Trump orders $2.9 million chips deal divestiture on security fears
President Donald Trump issued an order to dismantle a $2.9 million computer chip contract. He reached the conclusion that the agreement represented a threat to the security interests of the United States of America if the current owner, HieFo Corporation, persisted in holding onto the technology. In May of 2024, during President Joe Biden’s administration, a corporate transaction that had initially garnered minimal attention upon its announcement was thrust into the spotlight by an executive order. The transaction involved Emcore Corporation, an aerospace and defense specialist, selling its computer chips and wafer fabrication business to HieFo for a total of $2.92 million. The price encompassed the acceptance of approximately $1 million in liabilities at the moment of the transaction.
Conversely, Trump is now insisting that HieFo divest itself of that technology within the next 180 days, asserting that there is compelling evidence that the current owner is a citizen of the People’s Republic of China. Dr. Genzao Zhang and Harry Moore are the founders of HieFo. The same group of personnel in Alhambra, California, will largely continue to oversee the plans for the technology acquired from Emcore, as indicated. Zhang has pledged to persist in the quest for the most innovative and disruptive technological solutions, including those designed for artificial intelligence applications. Before taking on the role of CEO at HieFo, Zhang held the position of vice president of engineering at Emcore.
A request for comment regarding Trump’s directive was made to HieFo; however, they did not respond immediately. At the time the HieFo acquisition was being completed, Emcore operated as a publicly traded entity; however, about a year ago, the investment firm Charlesbank Capital Partners transitioned the company to private ownership.
