US president stops Chinese-linked acquisition on national security grounds

President Donald Trump on Friday blocked a $3 million acquisition by US photonics company HieFo Corp of assets belonging to New Jersey-based aerospace and defence firm Emcore, citing national security concerns linked to China.

In an order issued by the White House, Trump said HieFo was “controlled by a citizen of the People’s Republic of China” and that the company’s 2024 acquisition of Emcore’s businesses had led him to conclude it could “take action that threatens to impair the national security of the United States.” The order did not identify the individual involved or provide further details on the specific concerns.

“The Transaction is hereby prohibited,” Trump said, directing HieFo to “divest all interests and rights in the Emcore Assets, wherever located,” within 180 days.

Following the order, the US Treasury Department said the Committee on Foreign Investment in the United States had identified a national security risk during its review of the deal, though it did not elaborate on the nature of the risk.

Emcore, which was publicly traded at the time of the transaction and later taken private, has said HieFo acquired its chips business and indium-phosphide wafer fabrication operations for $2.92 million.

At the time of the deal, HieFo said it was co-founded by Genzao Zhang, a former Emcore vice president of engineering, and Harry Moore, whose LinkedIn profile identifies him as a former senior sales director at Emcore.

By Tamilla Hasanova