President Donald Trump on Friday blocked the $3 million acquisition of assets by U.S.-based photonics firm HieFo Corp., citing concerns over national security and potential risks related to China. The deal involved HieFo’s acquisition of assets from New Jersey-based aerospace and defense company Emcore, reports Reuters.
In an executive order released by the White House, Trump stated that HieFo was "controlled by a citizen of the People's Republic of China," and that its purchase of Emcore’s businesses raised concerns over actions that could "impair the national security of the United States." The order did not specify the individual involved or detail the specific security concerns prompting the decision.
"The transaction is hereby prohibited," Trump’s order declared, requiring HieFo to "divest all interests and rights in the Emcore assets, wherever located," within 180 days.
The Committee on Foreign Investment in the United States (CFIUS), which investigates potential national security risks related to foreign investments, identified concerns during its review of the deal. The Treasury Department confirmed this after Trump’s decision, but did not elaborate on the exact nature of the risk.
HieFo and Emcore did not immediately respond to requests for comment, and no statements were issued on their official websites as of late Friday.
At the time of the acquisition, Emcore, which was publicly traded before going private, had agreed to sell its chip business and indium-phosphide wafer-fabrication operations to HieFo for $2.92 million. HieFo described itself as being co-founded by Genzao Zhang, a former Emcore vice president of engineering, and Harry Moore, a former senior sales director at Emcore, according to his LinkedIn profile.
Trump’s move highlights the growing tension between the U.S. and China over security concerns, especially in sensitive industries such as semiconductor technology, which has been a key focus of the ongoing trade and technological rivalry between the two countries.
Bd-pratidin English/ Jisan
