MENA Newswire, WASHINGTON: President Donald Trump has blocked a planned $3 million acquisition by U.S. photonics company HieFo Corp. of assets belonging to New Jersey-based aerospace and defense manufacturer Emcore Corporation, citing national security concerns and the company’s links to China. The move, detailed in an executive order released Friday, prohibits the transaction and mandates that HieFo divest all interests and rights in the Emcore assets within 180 days. According to the White House order, HieFo is “controlled by a citizen of the People’s Republic of China,” a factor the president said led him to determine that the acquisition “threatens to impair the national security of the United States.” The directive follows an investigation by the Committee on Foreign Investment in the United States (CFIUS), which concluded that the deal posed risks to U.S. national security interests. Neither the order nor accompanying government statements identified the individual linked to the Chinese government or provided further details on the nature of the risks involved.
The action marks the latest in a series of U.S. government interventions in transactions involving sensitive technologies, particularly within the semiconductor and defense sectors. CFIUS, which reviews foreign investments for potential national security implications, has expanded its oversight in recent years to address concerns about strategic technologies and ownership structures tied to foreign entities. Emcore, an established name in photonics and semiconductor manufacturing, has a history of developing components used in aerospace, defense, and communications systems. The company’s assets involved in the proposed sale included its indium-phosphide wafer fabrication facilities and photonics chip business, valued at approximately $2.92 million. Emcore, which was publicly traded when the deal was announced, later transitioned to private ownership.
In a statement following the announcement, the U.S. Department of the Treasury, which chairs CFIUS, confirmed that the committee identified a national security risk related to the transaction. The department did not elaborate on the specific issues or technologies involved. The presidential order requires HieFo to unwind the acquisition completely, ensuring that all Emcore assets under its control are divested within the designated timeframe. HieFo was co-founded by Genzao Zhang, a former vice president of engineering at Emcore, and Harry Moore, whose professional background includes serving as a senior sales director at Emcore. Publicly available information indicates that HieFo is based in the United States, but its ownership and control structure prompted review by CFIUS. The company did not respond to requests for comment following the release of the White House order. Emcore also did not issue any public statement as of late Friday.
Details emerge on Emcore’s divested semiconductor assets
The blocked transaction underscores the U.S. government’s continued focus on securing critical supply chains in sectors such as semiconductors, photonics, and aerospace. While the Emcore assets at issue were relatively small in financial terms, they involved advanced optical and chipmaking technologies that fall under export control and defense-related regulations. The order reinforces the federal government’s position that even modest acquisitions can raise significant security considerations if the ownership structure or technology transfer risks are unclear. The case also highlights the growing number of smaller-scale transactions being reviewed by CFIUS, reflecting its broader mandate to examine any deal that could lead to foreign control of sensitive U.S. assets. Such reviews have intensified since the passage of the Foreign Investment Risk Review Modernization Act, which expanded the committee’s authority to block or unwind acquisitions deemed to pose national security threats.
Smaller-scale tech acquisitions now under tighter watch
Trump’s decision requires HieFo to notify the Treasury Department within seven days of all steps taken to comply with the divestment order and to provide updates on progress toward full divestiture. The directive also authorizes CFIUS to oversee and verify compliance, ensuring that all affected assets are removed from HieFo’s ownership. The Emcore-HieFo case is among several recent actions by the U.S. government to limit potential exposure of advanced technology assets to entities linked to China or other foreign powers. While the financial size of the deal is relatively minor compared to larger semiconductor mergers, the decision demonstrates that CFIUS and the administration remain active in monitoring and, when necessary, prohibiting transactions that present even limited risk to national security.
As the divestment process moves forward, both companies are expected to cooperate with federal authorities to ensure compliance with the presidential order. The decision adds to a growing record of blocked or reversed transactions in the high-technology and defense sectors, signaling ongoing vigilance by U.S. regulators in safeguarding strategically important industries. It also underscores the increasing scrutiny of cross-border transactions involving critical technologies, particularly those tied to semiconductor manufacturing and advanced materials. The enforcement of such orders demonstrates the government’s continuing efforts to ensure that ownership structures, even in small-scale deals, do not compromise U.S. national security interests or expose sensitive innovations to potential foreign control.