{"id":82,"date":"2026-01-03T11:57:17","date_gmt":"2026-01-03T11:57:17","guid":{"rendered":"https:\/\/newsliked.online\/?p=82"},"modified":"2026-01-03T11:57:41","modified_gmt":"2026-01-03T11:57:41","slug":"trump-orders-chinese-controlled-firm-to-unwind-chip-asset-deal-citing-national-security-risks","status":"publish","type":"post","link":"https:\/\/newsliked.online\/?p=82","title":{"rendered":"Trump orders Chinese-controlled firm to unwind chip asset deal, citing national security risks"},"content":{"rendered":"<h1 class=\"ArticleHeader-headline\">Trump orders Chinese-controlled firm to unwind chip asset deal, citing national security risks<\/h1>\n<ul>\n<li>Trump ordered a company controlled by a Chinese national to unwind a chip asset deal on security grounds.<\/li>\n<li>The U.S. flagged risks tied to chip IP, expertise and indium phosphide supply chains.<\/li>\n<li>The case highlights tighter scrutiny of foreign tech deals amid U.S.-China rivalry.<img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-83\" src=\"https:\/\/newsliked.online\/wp-content\/uploads\/2026\/01\/Screenshot-2026-01-03-185435-300x168.png\" alt=\"\" width=\"870\" height=\"487\" srcset=\"https:\/\/newsliked.online\/wp-content\/uploads\/2026\/01\/Screenshot-2026-01-03-185435-300x168.png 300w, https:\/\/newsliked.online\/wp-content\/uploads\/2026\/01\/Screenshot-2026-01-03-185435.png 738w\" sizes=\"auto, (max-width: 870px) 100vw, 870px\" \/>A company controlled by a Chinese national was ordered by U.S. President Donald Trump on Friday to unwind a $2.9 million acquisition of chip assets from a U.S. manufacturer, citing national security concerns.The White House said in an\u00a0<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2026\/01\/regarding-the-acquisition-of-certain-assets-of-emcore-corporation-by-hiefo-corporation\/\" target=\"_blank\" rel=\"noopener\">executive order<\/a>\u00a0that HieFo Corporation, incorporated in Delaware, was \u201ccontrolled by a citizen of the People\u2019s Republic of China.\u201d\n<p>HieFo acquired the digital chips and related wafer design, fabrication, and processing businesses of New Jersey-based Emcore on April 30, 2024, which included a\u00a0<a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0349\" target=\"_blank\" rel=\"noopener\">semiconductor manufacturing facility<\/a>, the Treasury Department said in a separate statement.<\/p>\n<p>The potential diversion of the supply of indium phosphide chips manufactured by Emcore\u2019s digital chips business away from the U.S. was also identified as a national security risk, the Treasury Department added.<\/p>\n<p>HieFo and Emcore did not immediately respond to a CNBC request for comment.<\/p>\n<p>The Global Times, a Chinese government mouthpiece, citing an expert, said the divestment order \u201creflects Washington\u2019s anxiety over technology competition with China\u201d as it was\u00a0<a href=\"https:\/\/www.globaltimes.cn\/page\/202601\/1352074.shtml\" target=\"_blank\" rel=\"noopener\">made without<\/a>\u00a0a convincing rationale.<\/p>\n<p>The Treasury Department said the deal was not notified to the Committee on Foreign Investment in the United States, known as CFIUS, prompting a review by its non-notified transactions team.<\/p>\n<p>\u201cCFIUS identified a national security risk arising from the transaction relating to potential access to EMCORE\u2019s intellectual property, proprietary know-how, and expertise,\u201d the Treasury Department said.<\/p>\n<p>HieFo was ordered to divest all acquired assets within 180 days and to immediately restrict access to Emcore\u2019s technical information.<\/p>\n<p>In a statement dated Sept. 2, 2024, HieFo said the deal would allow\u00a0<a href=\"https:\/\/www.hiefo.com\/news\/show-38.html\" target=\"_blank\" rel=\"noopener\">operations to continue<\/a>\u00a0at Emcore\u2019s facility in Alhambra, California, and that it had \u201csuccessfully engaged\u201d nearly all key scientists, engineers and operational staff.<\/p>\n<p>HieFo was founded by Genzao Zhang and Harry Moore through a management buyout of wafer fabrication and chip-related assets from Emcore. Both founders list their start dates at HieFo as May 2024 on LinkedIn, when the acquisition closed.<\/p>\n<p>The company claimed it had inherited more than 40 years of optoelectronic innovation in indium phosphide chip manufacturing.<\/p>\n<p>Emcore manufactures navigation equipment such as gyroscopes and sensors used in commercial, industrial and defense applications, including autonomous navigation and weapons systems, according to its website.<\/p>\n<p>The company was\u00a0<a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/808326\/000119312525012197\/d834968ddefm14a.htm\" target=\"_blank\" rel=\"noopener\">delisted<\/a>\u00a0from Nasdaq in early 2025 following its merger with aerospace manufacturing holding company Velocity One LP in November 2024.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Trump orders Chinese-controlled firm to unwind chip asset deal, citing national security risks Trump ordered a company controlled by a Chinese national to unwind a chip asset deal on security grounds. The U.S. flagged risks tied to chip IP, expertise and indium phosphide supply chains. The case highlights tighter scrutiny of foreign tech deals amid [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":83,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-82","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"_links":{"self":[{"href":"https:\/\/newsliked.online\/index.php?rest_route=\/wp\/v2\/posts\/82","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsliked.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsliked.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsliked.online\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsliked.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=82"}],"version-history":[{"count":2,"href":"https:\/\/newsliked.online\/index.php?rest_route=\/wp\/v2\/posts\/82\/revisions"}],"predecessor-version":[{"id":85,"href":"https:\/\/newsliked.online\/index.php?rest_route=\/wp\/v2\/posts\/82\/revisions\/85"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsliked.online\/index.php?rest_route=\/wp\/v2\/media\/83"}],"wp:attachment":[{"href":"https:\/\/newsliked.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=82"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsliked.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=82"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsliked.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=82"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}