Trump Orders Divestment In $2.9 Million Computer Chips Deal, Citing Security Concerns
President Donald Trump issued an executive order on Friday to halt a $2.9 million computer chips deal involving HieFo Corp., citing national security concerns. The deal, announced in May 2024 during President Joe Biden’s administration, saw Emcore Corp. selling its computer chips and wafer fabrication operations to HieFo for $2.92 million. However, Trump now demands that HieFo divest the technology within 180 days due to “credible evidence” that the current owner is a citizen of China.
HieFo, founded by Dr. Genzao Zhang and Harry Moore, had plans to oversee the technology acquired from Emcore with the same team of employees in Alhambra, California. Zhang, a former vice president of engineering at Emcore and now HieFo’s CEO, expressed commitment to pursuing innovative solutions, including those related to artificial intelligence.
The article also mentions that Emcore was taken private by investment firm Charlesbank Capital Partner. HieFo did not immediately respond to requests for comment on Trump’s order.
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