Trump canceled the semiconductor deal

US President Donald Trump has blocked a semiconductor deal between Emcore and HieFo. The decree is published on the White House website. The American leader explained his decision by possible risks to the national security of the country.

In 2024, the companies announced the acquisition by HieFo of the Emcore semiconductor business, as well as production facilities for the manufacture of indium phosphide wafers. The deal amounted to $ 2.9 million. Now Trump has canceled it.

"There is credible evidence that allows me to believe that the HieFo corporation ... controlled by a citizen of the People's Republic of China ... may take actions that threaten the national security of the United States," the White House said in a new decree.

Within six months, HieFo will have to give up "all interests and rights to Emcore assets, wherever they are located," including contracts, inventories, tangible property, spare parts, fixed assets and accounts receivable, the publication said.

The move comes as part of US efforts to counter what they call China's dominance in the semiconductor industry, writes The Hill. Last month, the Trump administration announced the imposition of duties on imports of Chinese semiconductors from June 2027.

In August 2025, Trump announced his intention to impose one hundred percent duties on the import of microchips and semiconductors. The American president said that companies that undertake construction obligations in the United States will be exempt from duties. Trump's duties could damage manufacturers of semiconductor equipment by more than $ 1 billion a year, Reuters wrote.

Emcore is an American technology company, known primarily as a supplier of high—tech components for the aerospace, defense and optical industries. In addition, it has previously produced chips and manufactured indium phosphide (InP) wafers that are used in optical communications and other high-frequency applications.

HieFo, in turn, focuses on the development and production of photonic and optical chips for telecommunications, data networks and AI communications. Among the founders of the company is the former vice president of engineering from Emcore, Genzao Zhang, and therefore the company acquired most of the team and assets related to the semiconductor business from Emcore, RBC reminds.