Washington, 3 January: US President Donald Trump has blocked a major chip deal involving semiconductor assets linked to China, citing concerns over national security risks.
In an executive order issued on Friday, Trump prohibited HiPho Corporation from acquiring certain chip-related assets of MCore Corporation. The order stated that there is substantial evidence indicating the deal could threaten the security of the United States.
HiPho is a Delaware-registered company controlled by a Chinese national. It had acquired digital chip, wafer design, fabrication, and processing business assets from New Jersey-based MCore Corporation. The transaction was completed on 30 April 2024.
Trump noted that existing laws are not adequate to address the risks posed by this deal, prompting him to use his special powers.
The order fully cancels the transaction. HiPho is barred from having any direct or indirect rights over MCore’s assets. The company and its affiliates have been instructed to divest all interests in these assets within 180 days. The US Committee on Foreign Investment may extend this deadline if necessary.
Until the divestment process is complete and confirmed by the committee, HiPho will have no access to MCore’s assets. This restriction also applies to non-public technical information, IT systems, products, parts, components, books, and records. Written permission from the committee is required for any access.
The order empowers the committee to verify compliance, request certifications, and conduct audits. HiPho must periodically submit written reports detailing adherence to the order and progress on divestment.
Semiconductors, commonly known as chips, are critical for both civilian applications and defence purposes. Against the backdrop of growing strategic competition with China, the US continues to take measures to prevent foreign control over sensitive chip technology.
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My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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