Trump Blocks Semiconductor Deal with Executive Order for National Security
On December 19, 2024, President Donald Trump issued an executive order that halts a significant semiconductor deal involving U.S. and Chinese firms. This decision, motivated by national security concerns, directly impacts the proposed $2.92 million acquisition of EMCORE Corp by HieFo Corporation.
Details of the Semiconductor Deal
The deal in question intended for HieFo, a company based in Delaware and operated from China, to acquire semiconductor and wafer fabrication operations from EMCORE Corp, which is located in New Jersey. The announcement of this acquisition plan was made in 2024.
National Security Concerns
In the executive order, President Trump emphasized that credible evidence suggests the ownership of EMCORE’s assets by HieFo could threaten U.S. national security. The order explicitly states the potential risks involved with foreign control over critical semiconductor technology.
Legal and Administrative Actions
- Executive Order Issued: The order was executed under the Defense Production Act.
- Divestment Timeline: HieFo has 180 days to divest its interests in EMCORE’s assets.
- Oversight: The Committee on Foreign Investment in the United States (CFIUS) will supervise the divestment process.
This executive action underscores the ongoing scrutiny of foreign investments in sensitive sectors, particularly in technology and defense-related industries. By blocking the semiconductor deal, the Trump administration aims to safeguard American national interests and maintain control over vital technological infrastructure.
