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Trump Orders HieFo to Divest Emcore Chip Assets on National-Security Grounds

The order invokes the Defense Production Act, setting a 180-day CFIUS‑supervised divestment timeline.

Overview

  • The White House cited "credible evidence" that HieFo is controlled by a citizen of the People's Republic of China as the rationale for the action.
  • The directive prohibits HieFo from retaining any ownership or rights in the assets acquired from Emcore.
  • The transaction, completed on April 30, 2024, was valued at about $2.92 million and covered chips and wafer fabrication operations.
  • Emcore said the transferred portfolio included equipment, contracts, intellectual property, and inventory tied to Indium Phosphide wafer fabrication in Alhambra, California.
  • HieFo was founded by Dr. Genzao Zhang and Harry Moore, and Emcore has since been taken private by Charlesbank Capital Partners.