US President Donald Trump has ordered the forced divestment of key semiconductor assets acquired by HieFo Corporation, a Delaware-registered company, which he said is controlled by a Chinese national, citing national security risks.
In an executive order (EO) issued under the Defence Production Act, Trump on Friday said there was “credible evidence” that HieFo’s acquisition of EMCORE Corporation’s digital chips and related wafer design, fabrication and processing businesses could threaten US national security.
“There is credible evidence that leads me to believe that HieFo Corporation, a company organised under the laws of Delaware (HieFo) and controlled by a citizen of the People’s Republic of China … might take action that threatens to impair the national security of the United States,” Trump said in the order.
The EO prohibits HieFo from retaining any ownership or rights in the EMCORE assets and gives the company up to 180 days to divest them, subject to oversight by the Committee on Foreign Investment in the United States (CFIUS). The transaction, completed on April 30, 2024, is effectively unwound.
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Until the divestment is completed and verified, HieFo is barred from granting access to the assets or any non-public technical information, and it faces strict restrictions on restructuring, transferring or relocating the business.
