WASHINGTON: President Donald Trump on Friday ordered the unravelling of a USD 2.9 million computer chips deal that he concluded threatened US security interests if the current owner, HieFo Corp., remained in control of the technology.
The executive order cast a spotlight on a business deal that drew scant attention when it was announced in May 2024 during President Joe Biden's administration.
The deal involved aerospace and defence specialist Emcore Corp. selling its computer chips and wafer fabrication operations to HieFo for USD 2.92 million — a price that included the assumption of about USD 1 million in liabilities.
But Trump is now demanding that HieFo divest that technology within 180 days, citing “credible evidence” that the current owner is a citizen of the People's Republic of China.
HieFo was founded by Dr. Genzao Zhang and Harry Moore. According to a press release that came out after the deal closed, plans for the technology acquired from Emcore were to be overseen by largely the same team of employees in Alhambra, California.
Zhang, who was a vice president of engineering at Emcore before becoming HieFo's CEO, pledged to “continue the pursuit of the most innovative and disruptive solutions” with technology designed for purposes that would include artificial intelligence.
HieFo didn't immediately respond to a request for comment about Trump's order.
Emcore was a publicly traded company at the time of the HieFo deal, but was taken private last year by the investment firm Charlesbank Capital Partner.