File: President Donald Trump looks on after signing an executive order in the Oval Office at the White House on April 9, 2025.
Saul Loeb | AFP | Getty Images
The Chinese-owned company was ordered by US President Donald Trump on Friday to back out of its acquisition of $2.9 million worth of chip assets from a US manufacturer, citing national security concerns.
The White House said in an executive order that HieFo Corporation, which is incorporated in Delaware, is “controlled by nationals of the People’s Republic of China.”
On April 30, 2024, HieFo acquired New Jersey-based Emcore’s digital chip and related wafer design, manufacturing and processing operations, which also included semiconductor manufacturing facilities, the Treasury Department said in a separate statement.
The potential diversion of supplies of indium phosphide chips produced by Emcor’s digital chip business outside the United States was also identified as a national security risk, Treasury added.
HieFo and Emcore did not immediately respond to CNBC’s requests for comment.
The Chinese government’s mouthpiece, the Global Times, cited experts as saying the sale order was made without a convincing basis and “reflects U.S. concerns about technological competition with China.”
The Treasury Department said the transaction had not been notified to the Committee on Foreign Investment in the United States, known as CFIUS, prompting a review by its unnotified transactions team.
“CFIUS has identified national security risks arising from transactions involving potential access to EMCORE’s intellectual property, proprietary know-how, and expertise,” the Treasury Department said.
HieFo was ordered to sell all acquired assets within 180 days and immediately restrict access to Emcore’s technical information.
HieFo said in a statement dated September 2, 2024, that the agreement allows for continued operations at Emcor’s facility in Alhambra, California, and has “successfully engaged” nearly all of its key scientists, engineers and operational staff.
HieFo was founded by Genzao Zhang and Harry Moore through the management acquisition of wafer manufacturing and chip-related assets from Emcore. Both founders listed their founding date at HieFo on LinkedIn as May 2024, when the acquisition was completed.
The company claimed to inherit more than 40 years of optoelectronic innovation in indium phosphide chip manufacturing.
Emcore makes navigation equipment such as gyroscopes and sensors used in commercial, industrial and defense applications, including autonomous navigation and weapons systems, according to the company’s website.
The company was delisted from Nasdaq in early 2025 after merging with aerospace manufacturing holding company Velocity One LP in November 2024.
