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Trump orders divestment of $US2.9m computer chips deal

By AAP Newswire

Jan 3, 2026

President Donald Trump has ordered the unravelling of a $US2.9 million ($A4.3 million) computer chips deal, citing US security concerns related to China.

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Trump demanded HieFo divest the deal within 180 days, citing "credible evidence" that the current owner is a citizen of the People's Republic of China.Â

The executive order cast a spotlight on a business deal that drew scant attention when it was announced in May 2024 during president Joe Biden's administration.

It involved aerospace and defence specialist Emcore Corp selling its computer chips and wafer fabrication operations to HieFo for $US2.92 million - a price that included the assumption of about $US1 million in liabilities.

HieFo was founded by Dr Genzao Zhang and Harry Moore. According to a press release that came out after the deal closed, plans for the technology acquired from Emcore were to be overseen by largely the same team of employees in Alhambra, California.

Zhang, who was a vice president of engineering at Emcore before becoming HieFo's CEO, pledged to "continue the pursuit of the most innovative and disruptive solutions" with technology designed for purposes that would include artificial intelligence.

HieFo didn't immediately respond to a request for comment about Trump's order.

Emcore was a publicly traded company at the time of the HieFo deal, but was taken private last year by the investment firm Charlesbank Capital Partner.