Trump opposes the chips sale, citing concerns about China and security
On Friday, President Donald Trump prevented U.S. photonics company HieFo Corp from acquiring $3 million in assets from New Jersey-based aerospace and defense firm Emcore, citing concerns related to national security and China.
In a statement released by the White House, Trump indicated that HieFo was “controlled by a citizen of the People’s Republic of China” and that its 2024 acquisition of Emcore’s businesses led the president to believe it may “take action that threatens to impair the national security of the United States.”
The order failed to specify the individual or elaborate on Trump’s concerns.
“The Transaction is hereby prohibited,” Trump stated, instructing HieFo to “divest all interests and rights in the Emcore Assets, wherever located,” within 180 days.
The Treasury Department stated that the Committee on Foreign Investment in the United States has identified a national security risk and is opening a new investigation into the deal following Trump’s order. The statement failed to clarify the national security risk.
HieFo and Emcore were unavailable for comment and had not shared any response on their websites as of late Friday.
Emcore, which was publicly traded during the transaction and subsequently taken private, announced that HieFo acquired its chips business and indium-phosphide wafer-fabrication operations for $2.92 million.
HieFo stated that it was co-founded by Genzao Zhang, a former vice president of engineering at Emcore, and Harry Moore, who is described on his LinkedIn profile as a former senior sales director at Emcore.
