Trump Orders Chinese-Controlled Company to Abandon Semiconductor Acquisition

National Security Concerns Drive Decision

In a significant move to protect national security, US President Donald Trump has ordered HieFo Corporation, a company controlled by Chinese nationals, to abandon its $2.9 million acquisition of Emcore's digital chip business. The decision, announced through an executive order, highlights growing concerns over foreign control of critical semiconductor technology.

Details of the Acquisition

The acquisition in question was completed on April 30, 2024, and involved significant assets including wafer design, chip fabrication, processing, and a semiconductor manufacturing facility based in New Jersey. These assets are considered crucial for various technological applications, particularly in the defense and telecommunications sectors.

Implications for Semiconductor Industry

This intervention marks a significant escalation in the ongoing scrutiny of foreign investments in critical US technology sectors. The decision demonstrates the US government's commitment to maintaining control over sensitive technologies and protecting national security interests. The move is likely to have far-reaching implications for future foreign investment in the US semiconductor industry.