US President Donald Trump has blocked a $3 million acquisition of Emcore, a New Jersey-based aerospace and defense company, by US photonics firm HieFo Corp.
The move was made on the grounds of national security concerns, particularly in relation to potential ties with China.
Trump said that 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 White House has stated that any transaction or method aimed at evading or circumventing this order will be prohibited, emphasizing that all efforts to bypass the decision are not allowed under US law. The order did not name the individual or detail Trump’s concerns.
“The transaction is hereby prohibited. Ordering HieFo to divest all interests and rights in the Emcore Assets, wherever located, within 180 days,” Trump noted.
The Committee on Foreign Investment in the United States (CFIUS) identified a national security risk during its investigation of the deal, according to a statement from the Treasury Department following Trump’s order. However, the statement did not provide specific details regarding the nature of the national security concern.
HieFo’s $2.92mn acquisition of Emcore in 2024
In 2024, the two corporations announced HieFo’s acquisition of Emcore’s chips business and indium phosphide wafer fabrication operations in a $2.92 million deal. The transaction, which was consummated on April 30, 2024, included the transfer of equipment, contracts, intellectual property, and inventory from Emcore’s facility in Alhambra, California.
