Trump blocks chips deal over national security, China-related concerns

President Donald Trump on Friday blocked the Delaware firm HieFo Corporation from acquiring assets in New Jersey-based aerospace and defense specialist Emcore for $3 million, citing national security and China-related concerns.The president claimed HieFo was “controlled by a citizen of the People’s Republic of China,” and that there was evidence to believe HieFo, through the merger, may “take action that threatens to impair the national security of the United States.”
“The Transaction is hereby prohibited,” Trump said and ordered HieFo to “divest all interests and rights in the Emcore assets, wherever located,” within 180 days.
The Treasury Department said the Committee on Foreign Investment in the United States identified the national security risk in the transaction.
The president and Treasury Department did not name the person who is allegedly being influenced by China, or provide further details or evidence to support the concern. HieFo purchased Emcore’s chips business and indium-phosphide wafer-fabrication operations for $2.92 million, according to Reuters. 
Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.

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