US President Donald Trump has blocked a semiconductor deal between Emcore and HieFo. The executive order was posted on the White House website. The US leader cited potential national security risks for his decision.
In 2024, the companies announced HieFo's acquisition of Emcore's semiconductor business, as well as its indium phosphide wafer manufacturing facilities. The deal was valued at $2.9 million. Trump has already revoked it.
“There is credible evidence that leads me to believe that HieFo, a corporation controlled by a citizen of the People's Republic of China, may engage in actions that threaten the national security of the United States“, the new White House executive order says.
Within six months, HieFo must divest itself of “all interests and rights in Emcore's assets, wherever located“, including contracts, inventory, tangible assets, spare parts, fixed assets and receivables, the publication states.
The move is part of the US effort to counter China's dominance in the semiconductor industry, The Hill reports. Last month, the Trump administration announced tariffs on imports of Chinese semiconductors, effective June 2027.