President Donald Trump has blocked a $3 million technology acquisition, citing national security concerns and China-related risks, Reuters reported. The decision affects HieFo Corp’s purchase of assets from Emcore, a U.S.-based aerospace and defence technology firm.

The White House said HieFo is controlled by a Chinese citizen. Because of that ownership structure, Trump determined the deal could pose a risk to U.S. national security. As a result, he ordered the transaction unwound within 180 days and barred HieFo from retaining any interest in the assets.

🧾 Details of the Blocked Acquisition

The deal involved Emcore’s chip business and indium phosphide wafer fabrication operations. HieFo acquired the assets in 2024 for about $2.92 million. Emcore had previously been a publicly listed company before later going private.

Trump’s order did not spell out specific security threats. However, it said the transaction raised concerns during a government review process. The order followed an assessment by the Committee on Foreign Investment in the United States (CFIUS), which examines foreign investments that could affect U.S. security interests.

🔍 Role of CFIUS and Government Review

CFIUS plays a central role in reviewing foreign acquisitions involving sensitive technologies. In this case, the committee identified risks tied to foreign control of assets linked to advanced chip manufacturing. While the White House did not disclose classified details, it said the review found the deal inconsistent with U.S. security priorities.

Under the order, HieFo must fully divest the assets and confirm compliance within the set timeframe. Officials said the action reflects the administration’s authority to reverse completed transactions when security risks emerge after a deal closes.

🌐 Broader Context Around Chip Security

The blocked transaction comes amid increased U.S. scrutiny of semiconductor and photonics technologies, especially where foreign ownership is involved. Successive administrations have treated chips as strategically sensitive because of their use in defence, aerospace, and communications systems.

Reuters reported that U.S. officials continue to tighten oversight of investments tied to China. The goal, according to government statements, is to prevent sensitive technology from falling under foreign influence that could compromise national security or supply chains.

📉 What Happens Next

HieFo now has 180 days to unwind the transaction and divest the Emcore assets. U.S. authorities will monitor compliance with the order. As of the report, neither HieFo nor Emcore had issued a public response.