US President Donald Trump has issued an executive order blocking a deal between American semiconductor assets and a Chinese-linked company due to national security concerns. The order prohibits HieFo Corporation, controlled by a Chinese national, from acquiring certain chip-related assets of Emcore Corporation. Trump cited “credible evidence” that the transaction could jeopardize US national security.
HieFo, based in Delaware, had acquired assets related to digital chips, wafer design, fabrication, and processing businesses of Emcore, a New Jersey company. The acquisition, completed on April 30, 2024, raised concerns prompting the executive order. Trump stated that existing legal authorities were insufficient to address the risks posed by the transaction.
The order mandates the prohibition of the transaction, preventing HieFo from holding any interest or rights in Emcore assets. HieFo and its affiliates are required to divest all such interests within 180 days, unless the Committee on Foreign Investment in the United States (CFIUS) extends the deadline. Compliance measures, certifications, and audits by CFIUS are authorized to ensure adherence to the order.
Emcore had previously announced the sale of its chips business and wafer fabrication operations for $2.92 million, with HieFo assuming certain liabilities. The deal encompassed assets related to Emcore’s discontinued chips business, including facilities in Alhambra, California. CFIUS, chaired by the US Treasury Department, reviews foreign investments for national security risks, especially concerning advanced technologies.
