Trump orders Chinese-controlled firm to unwind chip asset deal, citing national security risks
File:President Donald Trump looks on after signing an executive order in the Oval Office of the White House on April 9, 2025.
Saul Loeb | Afp | Getty Images
US President Donald Trump on Friday ordered a company controlled by a Chinese national to cancel its $2.9 million purchase of chip assets from a US manufacturer, citing national security concerns.
The White House made a statement executive order He said HieFo Corporation, founded in Delaware, was “controlled by a citizen of the People’s Republic of China.”
HieFo acquired New Jersey-based Emcore’s digital chips and related wafer design, manufacturing and processing businesses on April 30, 2024, which “could harm the national security of the United States,” the White House said.
The Treasury Department said in a separate statement that the assets also include some semiconductor manufacturing facility.
The potential diversion of supplies of indium phosphide chips produced by Emcore’s digital chip business away from the United States has also been identified as a national security risk, the Treasury Department added.
HieFo and Emcore did not immediately respond to CNBC’s request for comment.
The Chinese government mouthpiece Global Times, citing an expert, said the divestment order “reflects Washington’s concern about technology competition with China.” It was done without A convincing reason.
The Treasury Department said the deal was not reported to the Committee on Foreign Investment in the United States, known as CFIUS, which led to a review by the committee’s unreported transactions team.
“CFIUS has identified a national security risk arising from the transaction related to potential access to EMCORE’s intellectual property, proprietary knowledge, and expertise,” the Treasury Department said.
HieFo was ordered to dispose of all acquired assets within 180 days and immediately restrict access to Emcore’s technical information.
HieFo said in its statement dated September 2, 2024 that the agreement would allow. operations to continue He said Emcore has “successfully deployed” nearly all key scientists, engineers and operational personnel at its facility in Alhambra, California.
HieFo was founded by Genzao Zhang and Harry Moore through the acquisition of wafer manufacturing and chip-related assets from Emcore. Both founders list their start date at HieFo on LinkedIn as May 2024, when the acquisition closes.
The company claimed to have inherited over 40 years of optoelectronic innovation in indium phosphide chip manufacturing.
According to its website, Emcore manufactures navigation equipment such as gyroscopes and sensors used in commercial, industrial and defense applications, including autonomous navigation and weapons systems.
Company removed from list from Nasdaq in early 2025 following its merger with aerospace manufacturing holding company Velocity One LP in November 2024.
