USA (Parliament Politics Magazine) – President Donald Trump has ordered a Chinese-controlled company to unwind a $2.9 million US chip asset acquisition, citing national security risks.
The Delaware-based HieFo Corporation was
“controlled by a citizen of the People’s Republic of China,”
according to an executive order issued by the White House.
According to a separate announcement from the Treasury Department, on April 30, 2024, HieFo purchased the digital chips and associated wafer design, fabrication, and processing operations of New Jersey-based Emcore, which comprised a semiconductor manufacturing plant.
The Treasury Department said that another concern to national security was the possible diversion of the supply of indium phosphide chips produced by Emcore’s digital chips company away from the United States.
A request for response from CNBC was not immediately answered by HieFo or Emcore.
According to an expert cited by The Global Times, a Chinese official mouthpiece, the divestiture decision
“reflects Washington’s anxiety over technology competition with China”
because it was issued without a compelling justification.
The Committee on Foreign Investment in the United States, or CFIUS, was not informed of the transaction, according to the Treasury Department, which prompted a probe by its non-notified transactions team.
HieFo was mandated to promptly limit access to Emcore’s technical data and to sell off all acquired assets within 180 days.
HieFo announced in a statement dated September 2, 2024, that it had “successfully engaged” almost all of the important scientists, engineers, and operational personnel and that the agreement would permit operations to continue at Emcore’s plant in Alhambra, California.
Genzao Zhang and Harry Moore acquired wafer fabrication and chip-related assets from Emcore to become HieFo. On LinkedIn, both founders state that they began working for HieFo in May 2024, the month the transaction was completed.
The business asserted that it had inherited over 40 years of optoelectronic innovation in the production of indium phosphide chips.
According to their website, Emcore produces navigation devices such gyroscopes and sensors for use in commercial, industrial, and military applications, such as autonomous navigation and weapons systems.
What specific assets must HieFo divest and timeline details?
President Donald Trump’s January 2, 2026, administrative order authorizes HieFo Corp. to divest all interests and rights in Emcore Corporation’s semiconductor means acquired in a$ 2.92 million deal perfected April 30, 2024.
Emcore’s discontinued digital chips business, including indium phosphide( InP) wafer design, fabrication, and processing operations. Semiconductor manufacturing installation in Alhambra, California; outfit, force, fixed means, corridor, and real property( leased or possessed).
HieFo must complete full divestment within 180 timetable days( by early July 2026), extendable only by CFIUS discretion. Daily compliance instruments needed until vindicated complete, including IP destruction/ transfer checkups at HieFo’s expenditure; immediate access restrictions apply from order date.
