President Trump blocks $2.9M Emcore chip sale over security concerns

Trump ordered the divestment of a $2.9M chip deal, citing U.S. national security risks if HieFo retained control of Emcore ’s technology.

President Trump ordered the divestment of a $2.9 million chips deal, citing national security risks tied to HieFo Corp.’s control of Emcore ’s chip technology.

HieFo (short for High Efficiency Photonics) is a U.S.-based technology company specializing in the design and manufacture of high-efficiency photonic devices, especially indium phosphide (InP) optical chips used in telecommunications, data-center connectivity, sensing, and AI networking. The company emerged from a management buyout of assets previously belonging to Emcore, including chip and wafer fabrication operations, and has inherited decades of optoelectronic technology and expertise.

Emcore Corporation is an aerospace and defense technology company historically known for its work in inertial navigation systems, photonic integrated chips (PICs), and related optical technologies.

In 2024, Emcore sold its chip and wafer operations to HieFo for $2.92M, but the U.S. government blocked the deal in 2026 over security concerns.

“There is credible evidence that leads me to believe that HieFo Corporation, a company organized under the laws of Delaware (HieFo) and controlled by a citizen of the People’s Republic of China, through the acquisition of the assets comprising the digital chips and related wafer design, fabrication, and processing businesses of EMCORE Corporation, a New Jersey corporation (Emcore Assets), which acquisition completed on April 30, 2024 (such acquisition, the Transaction), might take action that threatens to impair the national security of the United States;” reads the executive order.

The presidential order signed on January 2, 2026 blocks and reverses HieFo Corporation’s April 2024 acquisition of certain Emcore assets, citing national security risks due to HieFo’s control by a Chinese citizen. The order prohibits HieFo from holding any interest in Emcore’s chip and wafer design and fabrication business and requires full divestment within 180 days, subject to Committee on Foreign Investment in the United States (CFIUS) oversight. Until divestment is complete, HieFo is barred from granting access to assets or sensitive technical information and from restructuring the assets without approval.

CFIUS is granted broad enforcement powers, including audits, inspections, and weekly compliance reporting. After divestment, HieFo must certify the transfer or destruction of all related intellectual property, with CFIUS verifying completion. The order bans evasion attempts and authorizes enforcement by the Attorney General.

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Pierluigi Paganini

(SecurityAffairs – hacking, Emcore)