Blitz Bureau
NEW DELHI: US President Donald Trump has blocked a deal involving American semiconductor assets and a Chinese-linked company, citing national security concerns. In an executive order issued on January 2, Trump barred HieFo Corporation from acquiring certain chip-related assets of Emcore Corporation. The order said there was “credible evidence” that the transaction could threaten the national security of the United States.
HieFo, a Delaware-based company controlled by a Chinese national, had acquired assets tied to digital chips as well as wafer design, fabrication, and processing businesses of New Jersey-based Emcore. The acquisition was completed on April 30, 2024. Trump said existing legal authorities, outside Section 721 of the Defense Production Act of 1950, did not provide “adequate and appropriate authority” to address the risks posed by the transaction.
Under the order, the transaction is prohibited, and HieFo is barred from holding any interest or rights in the Emcore assets, either directly or indirectly. HieFo and its affiliates have been directed to divest all such interests within 180 calendar days, unless the Committee on Foreign Investment in the United States, or CFIUS, extends the deadline.
Until the divestment is completed and verified by CFIUS, HieFo is prohibited from granting access to the Emcore assets. The restriction also applies to non-public technical information, information technology systems, products, parts, components, books, and records. Any access would require written approval from CFIUS. The order authorizes CFIUS to impose compliance measures, require certifications, and conduct audits to ensure adherence. HieFo must submit regular written certifications confirming that it is following the order and detailing progress toward divestment.
