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Trump Orders HieFo to Divest Emcore Chip and Photonics Assets on Security Grounds

The order invokes the Defense Production Act to force a 180-day divestment under CFIUS oversight.

Overview

  • The White House said there is credible evidence HieFo is controlled by a citizen of the People’s Republic of China and could threaten U.S. national security.
  • The order prohibits HieFo from retaining any interest in the Emcore assets and sets a 180-day deadline to sell them under CFIUS supervision.
  • Treasury said CFIUS identified a national security risk in the transaction, and the executive order relies on Defense Production Act authority.
  • The assets include Emcore’s discontinued chips business and indium‑phosphide wafer fabrication in Alhambra, California, covering equipment, contracts, intellectual property and inventory.
  • The sale closed on April 30, 2024 for about $2.9 million, and HieFo was founded by former Emcore executive Genzao Zhang with Harry Moore.