President Donald Trump has ordered a China-linked buyer to unwind its purchase of semiconductor assets from EMCORE Corporation, reversing a deal that had already received state approval and tax incentives in California, citing national security risks in a White House executive order issued Friday.
The executive order directs HieFo Corporation to divest all ownership interests tied to its acquisition of EMCORE assets within 180 days, after federal authorities concluded there was "credible evidence" the transaction could threaten U.S. national security.
HieFo is a Delaware-incorporated company controlled by a citizen of the People’s Republic of China.
The White House said the transaction, completed April 30, 2024, involved EMCORE’s digital chip operations, including wafer design, fabrication, processing equipment, and related intellectual property.
The federal action unwinds a deal that had already moved forward with state-level support.
In June 2025, the California Alternative Energy and Advanced Transportation Financing Authority approved HieFo for a sales and use tax exclusion tied to expanding and upgrading its semiconductor manufacturing facility in Alhambra, California.
According to the California staff report and board resolution, the state approved tax relief on up to $13.5 million in manufacturing equipment, construction upgrades, and research assets, estimating a tax benefit of about $1.14 million and citing projected support for more than 100 production-related jobs.
The California document also details HieFo’s ownership structure, identifying Asia-Pacific Environment Investment Limited as the majority owner, and describes the company’s focus on indium phosphide photonic and laser chip devices used in optical communications and sensing technologies.
Despite that approval, Trump acted under Section 721 of the Defense Production Act following a review by the Committee on Foreign Investment in the United States, which allows the president to block or unwind foreign transactions involving U.S. companies when national security risks are identified.
The order bars HieFo and its affiliates from accessing the assets or any nonpublic technical information tied to them until divestment is completed and verified by CFIUS and prohibits any restructuring that would delay or evade compliance.
EMCORE previously disclosed that it sold its chips business and indium phosphide wafer fabrication operations for $2.92 million, with the assumption of certain liabilities, as part of a strategy to exit that market segment.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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