Trump Orders Chinese-Controlled Firm to Unwind Purchase of U.S. Chip Assets
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HieFo primarily designs and manufactures indium phosphide (InP) optical chips.
U.S. President Donald Trump has ordered a Chinese-controlled company to unwind its acquisition of assets from American aerospace and defense manufacturer Emcore Corp., citing national security concerns.
In an executive order released Jan. 2, the White House said optical-chip company HieFo Corp. must divest assets it acquired from Emcore on April 30, 2024, after the administration determined the transaction could pose risks to U.S. national security.
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- President Trump ordered HieFo Corp., a Chinese-controlled company, to unwind its April 2024 acquisition of Emcore Corp.'s assets, citing national security concerns.
- HieFo failed to notify CFIUS about the deal; investigations found risks of transferring Emcore’s intellectual property and indium phosphide chip production overseas.
- HieFo must divest within 180 days; any buyer requires CFIUS approval, and the U.S. government may inspect operations during the process.
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Who’s Who
- HieFo Corp.
- HieFo Corp. is a Chinese-controlled, Delaware-incorporated company specializing in InP optical chips. It acquired assets from Emcore Corp. in April 2024, including digital chips and a semiconductor facility. The U.S. government, citing national security, ordered HieFo to divest these assets within 180 days due to concerns about intellectual property transfer and overseas relocation of chip production. Its leadership includes co-founder and CEO Genzao Zhang, a former Emcore VP.
- Emcore Corp.
- Emcore Corp. is an American aerospace and defense manufacturer that sold its digital chips and related wafer design, fabrication, and processing business, including a semiconductor manufacturing facility, to HieFo Corp. in April 2024. The acquisition has been ordered to be unwound by President Donald Trump due to national security concerns. Emcore specializes in fiber optics and navigation technologies.
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What Happened When
- April 30, 2024：
- HieFo Corp. acquired assets from Emcore Corp., including digital chips, wafer design, fabrication, processing business, and a semiconductor manufacturing facility.
- After April 30, 2024：
- Following the acquisition, HieFo retained key scientists and engineers from Emcore’s defunct division and resumed operations at Emcore's Alhambra campus.
- Jan. 2, 2026：
- The White House released an executive order mandating HieFo Corp. to divest its acquisition of Emcore assets due to national security concerns.
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