Trump canceled chip sale to Chinese-owned firm

U.S. President Donald Trump on Friday by executive order canceled a $2.9 million chip technology sales agreement between U.S. company Emcore Corp. and HieFo Corp., citing a threat to national security.

He cited "credible evidence" that HieFo is controlled by a citizen of the People's Republic of China as the reason, according to the AP. The company has 180 days to divest the sensitive technology.

The deal in question, struck during the administration of President Joe Biden in May 2024, involved the sale of the chip division of Emcore, a company specializing in technology for the defense and aerospace industries. The transaction also included manufacturing operations and commitments valued at approximately one million dollars.

HieFo has not yet commented on the President's order. Emcore is no longer publicly traded - it was purchased by investment firm Charlesbank Capital Partners.

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