Trump Blocks HieFo’s $3 Million Purchase of Emcore Assets over National Security Concerns
U.S. President Donald Trump has prohibited photonics company HieFo Corp’s $3 million acquisition of assets from New Jersey-based aerospace and defence firm Emcore, citing national security concerns linked to China.
White House Order Cites Security Threat
In an executive order issued by the White House on Friday, Trump said HieFo was “controlled by a citizen of the People’s Republic of China” and that its 2024 acquisition of Emcore’s chip and wafer-fabrication businesses could “impair the national security of the United States.” The president directed HieFo to divest “all interests and rights in the Emcore assets, wherever located,” within 180 days.
The order did not name the Chinese citizen involved or specify the nature of the potential security threat. However, it followed a review by the Committee on Foreign Investment in the United States (CFIUS), which identified national security risks in the deal. The U.S. Treasury Department, which chairs CFIUS, confirmed the findings but did not elaborate on the specific concerns.
Deal Under Scrutiny for Chinese Links
Neither HieFo nor Emcore had issued public statements or comments as of late Friday. Emcore, once publicly traded and later taken private, had previously announced that HieFo purchased its chip business and indium-phosphide wafer-fabrication operations for $2.92 million.
At the time of the acquisition, HieFo said it was co-founded by Genzao Zhang, a former Emcore vice president of engineering, and Harry Moore, a former senior sales director at Emcore, according to Moore’s LinkedIn profile.
Heightened Oversight of Chinese Investment
The decision marks another instance of the U.S. government tightening scrutiny over Chinese-linked investments in technology and defence sectors. CFIUS has increasingly intervened in foreign deals involving sensitive technologies such as semiconductors, photonics, and aerospace systems, citing the potential transfer of critical know-how to foreign adversaries.
By blocking the HieFo transaction, Trump reaffirmed Washington’s position that acquisitions involving Chinese control or influence will face rigorous national security review, especially in industries related to advanced materials and defence technologies.
with inputs from Reuters
