Trump orders divestment of $US2.9m computer chips deal
President Donald Trump has ordered the unwinding of a US$2.9 million ($4.3 million) computer chip deal, citing US security concerns with China.
Trump demanded HieFo withdraw the deal within 180 days, citing “credible evidence” that the current owner is a citizen of the People’s Republic of China.
executive order It shed light on a business deal that received little attention when it was announced in May 2024 during President Joe Biden’s administration.
This involved aerospace and defense specialist Emcore Corp selling its computer chip and wafer manufacturing operations to HieFo for US$2.92 million; This price includes the assumption of liability of approximately US$1 million.
HieFo was founded by Dr Genzao Zhang and Harry Moore. Plans for the technology purchased from Emcore would be overseen by largely the same team of employees in Alhambra, California, according to a press release following the deal’s completion.
Zhang, who was vice president of engineering at Emcore before becoming CEO of HieFo, vowed to “continue to seek the most innovative and breakthrough solutions” with technology designed for purposes that could include artificial intelligence.
HieFo did not immediately respond to a request for comment on Trump’s order.
Emcore was a publicly traded company at the time of the HieFo deal but was taken private by investment firm Charlesbank Capital Partner last year.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
