WASHINGTON: US President Donald Trump has blocked a proposed acquisition involving photonics firm HieFo Corp, citing national security and China-related concerns. The decision halts HieFo’s planned purchase of assets belonging to New Jersey-based aerospace and defence specialist Emcore.
In an order released by the White House on Friday, President Trump said HieFo was “controlled by a citizen of the People’s Republic of China”. He added that the company’s 2024 acquisition of Emcore’s businesses raised concerns it could take actions threatening US national security.
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The order did not identify the individual said to control HieFo, nor did it outline specific risks linked to the transaction. However, Trump formally prohibited the deal and directed HieFo to divest all interests and rights in the Emcore assets within 180 days.
The move followed a review by the Committee on Foreign Investment in the United States (CFIUS), which identified a national security risk during its investigation. The US Treasury Department confirmed the finding but did not disclose further details about the nature of the risk.
HieFo Corp and Emcore were not immediately available for comment, and neither company had posted a public response on their websites as of late Friday. The lack of immediate reaction leaves uncertainty over whether either firm will challenge or comply with the order.
Emcore, which was publicly traded at the time of the deal and later taken private, previously stated that HieFo acquired its chip business and indium-phosphide wafer fabrication operations for $2.92 million. The transaction was part of Emcore’s restructuring strategy.
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At the time of the acquisition, HieFo said it was co-founded by Genzao Zhang, a former Emcore vice president of engineering, and Harry Moore, who is described on LinkedIn as a former senior sales director at Emcore.
The decision reflects Washington’s continued scrutiny of foreign-linked investments in sensitive technology sectors. It also underscores the Trump administration’s broader stance on limiting Chinese involvement in US semiconductor and defence-related industries.