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Trump blocks HieFo-Emcore deal over national security concerns
(MENAFN) US President Donald Trump on Friday issued an executive order preventing HieFo Corp. from acquiring semiconductor-related assets from Emcore Corp., pointing to concerns tied to national security, according to official statements.
The order states that HieFo, a company registered in Delaware, was established and is controlled by a Chinese national. It blocks the planned transfer of Emcore assets connected to digital chip technology, including wafer design, manufacturing, and processing activities, as outlined in the directive.
The two companies had previously announced that a transaction worth $2.92 million was finalized in 2024, involving the sale of Emcore’s chip operations based in New Jersey along with its indium phosphide wafer fabrication facilities, according to reports.
The executive order argues that the transaction “threatens to impair the national security of the United States," describing the move as part of broader efforts to restrict China’s access to sensitive and advanced semiconductor technologies.
Under the terms of the order, HieFo is required to divest the acquired assets within 180 days unless it receives approval for an extension from the federal body responsible for reviewing foreign investments for potential national security risks.
The order states that HieFo, a company registered in Delaware, was established and is controlled by a Chinese national. It blocks the planned transfer of Emcore assets connected to digital chip technology, including wafer design, manufacturing, and processing activities, as outlined in the directive.
The two companies had previously announced that a transaction worth $2.92 million was finalized in 2024, involving the sale of Emcore’s chip operations based in New Jersey along with its indium phosphide wafer fabrication facilities, according to reports.
The executive order argues that the transaction “threatens to impair the national security of the United States," describing the move as part of broader efforts to restrict China’s access to sensitive and advanced semiconductor technologies.
Under the terms of the order, HieFo is required to divest the acquired assets within 180 days unless it receives approval for an extension from the federal body responsible for reviewing foreign investments for potential national security risks.
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