Trump Orders Divestment in $2.9 Million Chips Deal Over Security Issues

President Donald Trump has ordered the unraveling of a $2.9 million computer chips deal, saying it threatened US national security if the current owner, HieFo Corp., remained in control of the technology, the Associated Press (AP) reported.

Trump is now demanding that HieFo divest the technology within 180 days. (Photo: HieFo)

The executive order spotlighted a business deal that drew little attention when it was announced in May 2024 during President Joe Biden’s administration.

The deal involved aerospace and defense specialist Emcore Corp. selling its computer chips and wafer fabrication operations to HieFo for $2.92 million, a price that included the assumption of about $1 million in liabilities.

Trump is now demanding that HieFo divest the 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. Genzhao Zhang and Harry Moore.

According to a press release issued after the deal closed, the technology acquired from Emcore was to be overseen by largely the same team of employees in Alhambra, California.