### Trump Blocks Semiconductor Deal Amid National Security Concerns On January 3, 2026, President Donald Trump issued an executive order blocking the $2.9 million acquisition of Emcore Corp's semiconductor assets by HieFo Corp, a U.S. photonics firm with ties to China. This decision was made due to concerns over national security, particularly regarding HieFo's ownership by a Chinese citizen. The deal, which had previously gone unnoticed when announced in May 2024 during President Biden's administration, has now come under scrutiny as it was believed to pose a risk to U.S. security interests [https://finance.yahoo.com/news/trump-blocks-chips-deal-cites-024539896.html, https://www.livemint.com/news/us-news/donald-trump-blocks-2-9-million-biden-era-semiconductor-deal-citing-security-reasons-hiefo-emcore-11767405492843.html]. ### Structure of the Response 1. **Background of the Deal** - The acquisition involved HieFo Corp purchasing Emcore's semiconductor technology and wafer fabrication operations for $2.9 million. - The deal was initially announced in May 2024 but received little attention until Trump's intervention [https://www.cnbctv18.com/world/trump-orders-divestment-in-usd-2-9-million-chips-deal-to-protect-us-security-interests-ws-l-19813438.htm]. 2. **Reasons for Blocking the Deal** - Trump cited national security concerns, specifically the potential for HieFo to act in ways that could impair U.S. security due to its Chinese ownership. - The executive order mandates that HieFo divest its interests in the deal within 180 days [https://www.malaymail.com/news/money/2026/01/03/trump-blocks-us-chips-deal-over-national-security-china-concerns/204117]. 3. **Implications of the Decision** - The blocking of this deal highlights ongoing tensions between the U.S. and China regarding technology and security. - It reflects a broader trend of increased scrutiny on foreign investments in U.S. technology sectors, particularly those linked to national security [https://www.newsbytesapp.com/news/business/why-trump-blocked-a-2-9m-semiconductor-deal-in-us/story]. ### Supporting Evidence and Data - **Key Details of the Deal:** - **Acquisition Value:** $2.9 million - **Assets Involved:** Semiconductor technology and wafer fabrication operations of Emcore Corp. - **Ownership Concern:** HieFo is controlled by a citizen of the People's Republic of China [https://www.devdiscourse.com/article/technology/3748193-trump-halts-controversial-computer-chip-deal-over-security-concerns]. - **Executive Order Highlights:** - The order requires HieFo to divest its interests within 180 days. - It emphasizes the need to protect U.S. security interests from foreign control [https://www.apnews.com/article/president-trump-hiefo-emcore-divestment-fd324a0b76b1680dc5750e222ed74313]. ### Summary of Findings 1. **Blocking of the Deal:** President Trump has blocked the $2.9 million acquisition of Emcore's semiconductor assets by HieFo due to national security concerns. 2. **Ownership Issues:** The primary concern stems from HieFo's ownership by a Chinese citizen, which raised alarms about potential risks to U.S. security interests. 3. **Future Actions Required:** HieFo is mandated to divest its interests in the deal within 180 days, reflecting a stringent approach to foreign investments in sensitive technology sectors. This decision underscores the ongoing vigilance of U.S. authorities regarding foreign investments, particularly those linked to national security, and highlights the complexities of international business dealings in the technology sector [https://www.hindustantimes.com/world-news/trump-blocks-chips-deal-cites-security-china-related-concerns-101767410983704.html].