Trump orders Chinese-controlled HieFo to unwind $2.92 million Emcore chip asset purchase

On January 2, 2026, the Trump administration ordered Delaware-based HieFo Corp., which is controlled by a Chinese citizen, to divest semiconductor assets it acquired from Emcore in a transaction valued at about $2.92 million. Officials concluded that allowing the company to retain the US chip technology posed national security risks, as experts say the components could have military and advanced AI applications. In parallel, China has introduced a 50% domestic equipment requirement for new chip production capacity, while the US has delayed new semiconductor tariffs on Chinese imports until June 23, 2027.