The federal order compelled HeiFo to divest all Emcore assets within 180 days, threatening to void the deal unless directives were met
By Amjad Qaimkhani
WASHINGTON: The Trump administration had blocked a major semiconductor acquisition involving China on Monday, citing national security concerns, in a move that underscores the increasing scrutiny of technology transfers amid rising US–China tensions.
President Donald Trump issued an executive order directing the US photonics company HeiFo to halt its acquisition of assets from New Jersey-based aerospace and defence firm Emcore, after concerns emerged over potential Chinese involvement in the transaction.
According to the White House, a Chinese national is part-owner of HeiFo, raising what officials described as potential risks to US national security. The order required HeiFo to divest all Emcore assets and associated rights within 180 days, effectively nullifying the deal unless the company complied with federal directives.
The original transaction, completed in 2024, had seen HeiFo purchase Emcore’s indium phosphide wafer fabrication operations and chip business for roughly $2.92 million, a deal that at the time had drawn little public attention.
The Committee on Foreign Investment in the United States (CFIUS) conducted a review of the transaction and identified concerns about the transfer of sensitive technology to entities with possible foreign influence.
While the specific details of the national security risks have not been disclosed, officials indicated that the nature of the semiconductor industry and its strategic importance in defence and communications had been central to the decision.
The move represents one of the rare instances in which the White House has directly intervened to reverse a completed technology acquisition, reflecting a broader effort to safeguard critical sectors from foreign interference. HeiFo has yet to issue a public response to the executive order.
Analysts said the decision could reverberate across the semiconductor industry, highlighting the increasingly tense environment surrounding US–China economic and technological relations and signaling a more cautious approach to foreign investment in sensitive technologies.
2 Comments
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