{"id":4912,"date":"2026-01-14T23:00:00","date_gmt":"2026-01-14T14:00:00","guid":{"rendered":"https:\/\/allaboutenglishmastery.com\/?p=4912"},"modified":"2026-01-14T20:51:27","modified_gmt":"2026-01-14T11:51:27","slug":"trump-blocks-chips-deal","status":"publish","type":"post","link":"https:\/\/allaboutenglishmastery.com\/ko\/trump-blocks-chips-deal\/","title":{"rendered":"Trump Blocks Chips Deal: A $3 Million Deal That Turned Into a National Security Story"},"content":{"rendered":"<h1 class=\"wp-block-heading\">Trump Blocks Chips Deal: A $3 Million Deal That Turned Into a National Security Story<\/h1>\n\n\n\n<h4 class=\"wp-block-heading\">Advanced | January 14, 2026<\/h4>\n\n\n\n<p>\u2728 <em>\ud63c\uc790\uc11c \uae30\uc0ac\ub97c \uc18c\ub9ac \ub0b4\uc5b4 \uc77d\uac70\ub098 \ud29c\ud130\ub97c \ub530\ub77c \uac01 \ub2e8\ub77d\uc744 \ubc18\ubcf5\ud574\uc11c \uc77d\uc73c\uc138\uc694. \ub808\ubca8...<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">The Headline Everyone Noticed<\/h2>\n\n\n\n<p>Even though the deal was worth only about <strong>$3 million<\/strong>, it still got stopped at the highest level.<\/p>\n\n\n\n<p>In early January, President <strong>Donald Trump blocked a chips-related acquisition<\/strong> involving <strong>HieFo Corporation<\/strong>, a U.S. photonics firm, and <strong>Emcore Corporation<\/strong>, a New Jersey-based aerospace and defense specialist. The government said the decision was about <strong>national security<\/strong> and <strong>China-related concerns<\/strong>, not money. (<a href=\"https:\/\/www.reuters.com\/world\/china\/trump-blocks-chips-deal-cites-security-china-related-concerns-2026-01-03\/\">Reuters<\/a>)<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Why \u201cTrump blocks chips deal\u201d Matters More Than the Price Tag<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">A deal from 2024 got pulled back in 2026<\/h3>\n\n\n\n<p>Here\u2019s the twist: this wasn\u2019t a \u201cfuture\u201d deal. According to the White House order, the acquisition was <strong>completed on April 30, 2024<\/strong>\u2014but the administration later decided it could still create risk. The order says there is \u201ccredible evidence\u201d that HieFo is <strong>controlled by a citizen of the People\u2019s Republic of China<\/strong>, and that the transaction <strong>\u201cmight take action that threatens to impair the national security of the United States.\u201d<\/strong> (<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2026\/01\/regarding-the-acquisition-of-certain-assets-of-emcore-corporation-by-hiefo-corporation\/\">The White House<\/a>)<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What Exactly Was Being Bought?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The assets were tied to chips and a specialized manufacturing process<\/h3>\n\n\n\n<p>The transaction covered <strong>Emcore\u2019s digital chips business<\/strong> and related <strong>wafer design, fabrication, and processing<\/strong>, including a <strong>semiconductor manufacturing facility<\/strong>, according to the Treasury Department. (<a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0349\">U.S. Treasury<\/a>)<\/p>\n\n\n\n<p>Reuters reported Emcore previously said HieFo purchased Emcore\u2019s <strong>chips business<\/strong> and <strong>indium-phosphide wafer-fabrication operations<\/strong> for <strong>$2.92 million<\/strong>. (<a href=\"https:\/\/www.reuters.com\/world\/china\/trump-blocks-chips-deal-cites-security-china-related-concerns-2026-01-03\/\">Reuters<\/a>)<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What CFIUS Said the Risk Was<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">It wasn\u2019t about \u201cchips in general\u201d\u2014it was about access and supply<\/h3>\n\n\n\n<p>The <strong>Committee on Foreign Investment in the United States (CFIUS)<\/strong> reviewed and investigated the transaction under the <strong>Defense Production Act<\/strong>.<\/p>\n\n\n\n<p>Treasury said CFIUS identified a national security risk linked to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>potential access to <strong>Emcore\u2019s intellectual property, proprietary know-how, and expertise<\/strong>, and<\/li>\n\n\n\n<li>The potential diversion of the <strong>supply<\/strong> of <strong>indium phosphide chips<\/strong> away from the United States.<\/li>\n<\/ul>\n\n\n\n<p>That\u2019s why the President\u2019s order directs HieFo to <strong>divest all interests and rights<\/strong> in the Emcore digital chips business. (<a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0349\">U.S. Treasury<\/a>)<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What Happens Next<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The order gives a deadline and strict \u201chands off\u201d rules<\/h3>\n\n\n\n<p>The White House order says the transaction is <strong>prohibited<\/strong>, and HieFo must <strong>divest within 180 days<\/strong> (unless CFIUS extends the timeline). It also restricts access: until divestment is verified, HieFo can\u2019t grant access to the Emcore assets or non-public technical information to non-HieFo personnel unless CFIUS approves it in writing. (<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2026\/01\/regarding-the-acquisition-of-certain-assets-of-emcore-corporation-by-hiefo-corporation\/\">The White House<\/a>)<\/p>\n\n\n\n<p>Treasury also noted that HieFo <strong>did not file the transaction with CFIUS until after<\/strong> CFIUS\u2019s <strong>non-notified<\/strong> team investigated it\u2014basically, the government found it first. Treasury used the moment to remind companies to think carefully about whether a deal could fall under CFIUS jurisdiction. (<a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0349\">U.S. Treasury<\/a>)<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Who Is HieFo?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">A small company, but with leadership ties to the seller<\/h3>\n\n\n\n<p>Reuters reported that HieFo said it was co-founded by <strong>Genzao Zhang<\/strong> (a former Emcore vice president of engineering) and <strong>Harry Moore<\/strong> (whose LinkedIn described him as a former senior sales director at Emcore). The news agency also noted that HieFo and Emcore were not immediately reachable for comment at the time of reporting (<a href=\"https:\/\/www.reuters.com\/world\/china\/trump-blocks-chips-deal-cites-security-china-related-concerns-2026-01-03\/\">Reuters<\/a>).<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Vocabulary<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Acquisition<\/strong> (noun) \u2013 the act of buying a company or business assets.<br><em>Example: The acquisition looked small, but it triggered a major security review.<\/em><\/li>\n\n\n\n<li><strong>Divest<\/strong> (verb) \u2013 to sell or get rid of ownership in something.<br><em>Example: The order says HieFo must divest the Emcore chip assets.<\/em><\/li>\n\n\n\n<li><strong>National security<\/strong> (noun) \u2013 protection of a country\u2019s safety, systems, and strategic interests.<br><em>Example: Officials said the decision was based on national security concerns.<\/em><\/li>\n\n\n\n<li><strong>Controlled<\/strong> (adjective) \u2013 directed or influenced by someone with power over it.<br><em>Example: The order said the company was controlled by a Chinese citizen.<\/em><\/li>\n\n\n\n<li><strong>Intellectual property (IP)<\/strong> (noun) \u2013 protected ideas, inventions, and designs.<br><em>Example: CFIUS worried about access to intellectual property and know-how.<\/em><\/li>\n\n\n\n<li><strong>Proprietary<\/strong> (adjective) \u2013 privately owned and not shared publicly.<br><em>Example: The chips involved proprietary manufacturing expertise.<\/em><\/li>\n\n\n\n<li><strong>Diversion<\/strong> (noun) \u2013 the act of redirecting something away from its intended destination.<br><em>Example: Officials mentioned the risk of diversion of chip supply away from the U.S.<\/em><\/li>\n\n\n\n<li><strong>Jurisdiction<\/strong> (noun) \u2013 legal authority to review or control something.<br><em>Example: Treasury warned companies to consider whether CFIUS has jurisdiction.<\/em><\/li>\n\n\n\n<li><strong>Wafer fabrication<\/strong> (noun) \u2013 making the thin semiconductor slices used to build chips.<br><em>Example: The deal included wafer fabrication operations.<\/em><\/li>\n\n\n\n<li><strong>Non-notified transaction<\/strong> (noun) \u2013 a deal not voluntarily filed for review, but discovered by regulators.<br><em>Example: Treasury said CFIUS\u2019s non-notified team investigated the transaction.<\/em><\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Discussion Questions (About the Article)<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Why did the U.S. government say this deal created a national security risk?<\/li>\n\n\n\n<li>What specific risks did Treasury say CFIUS identified?<\/li>\n\n\n\n<li>Why do you think the government cared about access to IP and \u201cknow-how\u201d?<\/li>\n\n\n\n<li>What might happen to a business when it is forced to divest assets within a short timeline?<\/li>\n\n\n\n<li>What lesson does Treasury seem to be sending to other companies about reporting deals?<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Discussion Questions (About the Topic)<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Where should governments draw the line between open markets and national security?<\/li>\n\n\n\n<li>Should small-dollar deals get the same scrutiny as multi-billion-dollar deals? Why or why not?<\/li>\n\n\n\n<li>What kinds of industries should be \u201cextra protected\u201d during foreign investment reviews?<\/li>\n\n\n\n<li>If a deal is already completed, do you think it should still be reversible? Why?<\/li>\n\n\n\n<li>How can companies reduce risk when selling sensitive technology across borders?<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Related Idiom<\/h3>\n\n\n\n<p><strong>\u201cHit the brakes\u201d<\/strong> \u2013 to stop or slow down suddenly because something feels risky.<\/p>\n\n\n\n<p><em>Example:<\/em> \u201cCFIUS hit the brakes on the deal once it saw potential IP and supply-chain risks.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>\ud83d\udce2 Want more learner-friendly news like this? \ud83d\udc49 <strong>Sign up for the All About English Mastery Newsletter!<\/strong> <a href=\"https:\/\/allaboutenglishmastery.com\/ko\/newsletter\/\"><strong>Click here<\/strong><\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Want to finally master English but don\u2019t have the time? <a href=\"https:\/\/allaboutenglishmastery.com\/ko\/english-mastery-course\/\"><strong>Mastering English for Busy Professionals<\/strong><\/a> is built for you.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Follow our YouTube Channel <a href=\"https:\/\/www.youtube.com\/@All_About_English\"><strong>@All_About_English<\/strong><\/a> for more tips.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>This article was inspired by: <strong><a href=\"https:\/\/www.reuters.com\/world\/china\/trump-blocks-chips-deal-cites-security-china-related-concerns-2026-01-03\/\">Reuters<\/a><\/strong>, <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2026\/01\/regarding-the-acquisition-of-certain-assets-of-emcore-corporation-by-hiefo-corporation\/\"><strong>The White House<\/strong><\/a>, and <a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0349\"><strong>U.S. Department of the Treasury<\/strong><\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>","protected":false},"excerpt":{"rendered":"<p>Trump Blocks Chips Deal: A $3 Million Deal That Turned Into a National Security Story Advanced | January 14, 2026 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4913,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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