Trump Orders HieFo to Divest $2.9M Chip Acquisition Due to Security Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 03 2026
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Source: CNBC
- Acquisition Cancellation: President Trump has ordered HieFo Corporation to unwind its $2.9 million acquisition of chip assets from New Jersey's Emcore within 180 days due to national security concerns, as the deal was not notified to the Committee on Foreign Investment in the United States (CFIUS).
- National Security Risk: The Treasury Department highlighted that the acquisition of Emcore's digital chip business posed a potential risk of diverting indium phosphide chip supplies away from the U.S., reflecting Washington's anxiety over technology competition with China.
- Technical Information Restrictions: HieFo is required to immediately restrict access to Emcore's technical information, a measure aimed at protecting Emcore's intellectual property and proprietary know-how from being accessed by external entities.
- Company Background: Founded by Zhang and Moore in May 2024 through a management buyout of Emcore's assets, HieFo claims to have inherited over 40 years of innovation in indium phosphide chip manufacturing; however, the cancellation of this acquisition may impact its future growth prospects.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
