President Donald Trump has blocked US photonics firm HieFo’s $3 million acquisition of assets in New Jersey-based aerospace and defence specialist Emcore, citing national security and China-related concerns.
In an order released by the White House, Trump said HieFo was “controlled by a citizen of the People’s Republic of China” and that its 2024 acquisition of Emcore’s businesses led the president to believe that it may “take action that threatens to impair the national security of the United States.”
“The Transaction is hereby prohibited,” Trump said, ordering HieFo to “divest all interests and rights in the Emcore Assets, wherever located,” within 180 days.
The Committee on Foreign Investment in the US identified a national security risk in its investigation of the deal, the Treasury Department said after Trump’s order. The statement did not specify the national security risk.
Emcore, publicly traded at the time of the deal and later taken private, has said HieFo bought its chips business and indium-phosphide wafer-fabrication operations for $2.92m.
HieFo said at the time that it was co-founded by Genzao Zhang, a former Emcore vice-president of engineering, and Harry Moore, whose LinkedIn profile describes him as a former senior sales director at Emcore.
In a statement dated September 2, 2024, HieFo said the deal would allow operations to continue at Emcore’s facility in Alhambra, California, and that it had “successfully engaged” nearly all key scientists, engineers and operational staff.
The company claimed it had inherited more than 40 years of optoelectronic innovation in indium phosphide chip manufacturing.
Emcore manufactures navigation equipment such as gyroscopes and sensors used in commercial, industrial and defence applications, including autonomous navigation and weapons systems, according to its website.
The company was delisted from Nasdaq in early 2025 following its merger with aerospace manufacturing holding company Velocity One LP in November 2024.
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