Trump Halts Controversial Computer Chip Deal Over Security Concerns

President Donald Trump has blocked a $2.9 million computer chip deal involving Emcore Corp. and HieFo, citing national security concerns. Trump's executive order mandates HieFo to divest the technology within 180 days, due to links with China. The move affects plans to use the tech for AI advancements.

In a move citing national security concerns, President Donald Trump on Friday ordered the dissolution of a $2.9 million computer chips deal between Emcore Corp. and HieFo, believing it compromised US interests. The deal, which involved selling technology and wafer fabrication operations, now faces a significant setback.

Initially approved during President Joe Biden's administration, the deal saw Emcore Corp. offload its computer chip division to HieFo for $2.92 million, including liabilities. However, due to 'credible evidence' indicating the current owner's ties with China, Trump has mandated HieFo to divest the acquired technology within 180 days.

The transaction, orchestrated by HieFo's founders Dr. Genzao Zhang and Harry Moore, planned to leverage the acquired technology for artificial intelligence. Despite the executive action, HieFo has yet to comment. Emcore, now a private entity owned by Charlesbank Capital Partner, previously traded publicly at the transaction's closure.

(With inputs from agencies.)