President Donald Trump signed an executive order Friday blocking a semiconductor deal between the two countries HieFo Corp. And Emcore Corp.citing national security concerns related to China.
Trump said there is “credible evidence” that “HieFo Corporation, a corporation organized under the laws of Delaware (HieFo) and controlled by a citizen of the People’s Republic of China… may take action that threatens to harm the national security of the United States.”
In 2024, the companies announced they had reached a deal to sell the New Jersey chip business and indium phosphide wafer production for approximately $2.9 million.
In addition, the executive order requires HieFo to divest all interests and rights in the Emcore assets within 180 days.
The Commission on Foreign Investment in the United States (CFIUS) will monitor enforcement and ensure compliance with the National Safety Directive.
Trump’s move is the latest measure aimed at cracking down on Chinese access to advanced semiconductor technologies. Last month, his government announced plans to impose tariffs on Chinese semiconductor imports in June 2027.
In 2017, CFIUS recommended blocking several takeovers, including the one in Oregon Grid semiconductor (NASDAQ:LSCC)citing similar national security concerns, showing that executive intervention in foreign corporate transactions has long been part of U.S. policy to protect critical technologies.
See also: China’s Diversion Boom: How Big Companies Are Dodging the Impact of US Tariffs
The US is fighting China’s technological reach
Trump’s recent move adds to a series of actions the US government has taken to counter China’s technological advances.
In September 2025, Trump extended the deadline for TikTok‘s divestment from the Chinese parent company ByteDansafter talks with the Chinese president Xi Jinping.
Meanwhile, US lawmakers have pushed for legislation to prevent the Trump administration from granting China broader access to advanced artificial intelligence chips from companies like Nvidia Corp (NASDAQ:NVDA) And Advanced Microdevices, Inc (NASDAQ:AMD) for the next 2.5 years.
Trump’s decision to block the HieFo-Emcore deal is the latest in a series of actions aimed at preserving US technological superiority and countering China’s growing influence in the global technology industry.
Read next:
Photo: Shutterstock
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
#Trump #blocks #million #HieFoEmcore #chip #deal #Chinarelated #national #security #concerns #Advanced #Micro #Devices #NASDAQAMD #Lattice #Semiconductor #NASDAQLSCC