President Donald Trump has taken definitive action to block the $3 million acquisition of assets from Emcore, a New Jersey-based aerospace and defense specialist, by the U.S. photonics company HieFo Corp. The decision, announced via an order from the White House, cites concerns over national security and ties to China.
According to the order, Trump noted that HieFo is “controlled by a citizen of the People’s Republic of China.” He expressed apprehensions regarding the potential implications of the acquisition, suggesting that it may lead HieFo to engage in actions that could threaten U.S. national security. While the specific nature of these concerns was not disclosed, the President’s actions indicate a heightened sensitivity towards foreign investments that could compromise national interests.
The order categorically prohibits the transaction, mandating that HieFo divest all interests and rights related to the Emcore assets within a timeframe of 180 days. This directive underscores a growing trend of scrutiny regarding foreign investment decisions, particularly those involving companies with Chinese connections.
The Treasury Department confirmed that the Committee on Foreign Investment in the United States had identified a national security risk during its review of the proposed deal. However, details regarding the specific risks identified were not released.
As of late Friday, neither HieFo nor Emcore had publicly commented on the situation, and their websites reflected no information regarding the recent developments. Prior to this intervention, Emcore had indicated that it sold its chips business and indium-phosphide wafer-fabrication operations to HieFo for nearly $2.92 million.
HieFo was co-founded by Genzao Zhang, a former vice president of engineering at Emcore, and Harry Moore, who has been described on LinkedIn as a former senior sales director at Emcore. The involvement of figures with established connections to Emcore adds another layer of complexity to the concerns surrounding the acquisition.
This decision is part of a broader pattern of vigilance from the U.S. government over foreign investments, particularly those linked to China, as authorities continue to assess potential risks that may arise from increased foreign influence in critical industries.
