Ethical Hacking News
The Trump Administration has blocked a $2.9 million Emcore chip sale due to concerns over national security risks posed by HieFo Corporation, controlled by a Chinese citizen. The divestment order comes after the U.S. government had previously blocked the acquisition in 2026. This case highlights the administration's commitment to protecting American businesses and industries from potential threats.
The U.S. government has blocked a $2.9 million Emcore chip sale citing national security risks. The deal was previously blocked in 2026 due to concerns over HieFo Corporation's control by a Chinese citizen. HieFo is a U.S.-based technology company with ties to China, specializing in high-efficiency photonic devices. The executive order requires full divestment of Emcore's chip and wafer operations within 180 days. The move marks a new precedent for using national security grounds to challenge corporate transactions.
President Donald Trump has issued an executive order blocking a $2.9 million Emcore chip sale, citing national security risks due to HieFo Corporation's control by a Chinese citizen. The divestment of the deal comes after the U.S. government had previously blocked the acquisition in 2026 over concerns that it might compromise the country's national security.
HieFo is a U.S.-based technology company specializing in high-efficiency photonic devices, including indium phosphide (InP) optical chips used in telecommunications, data-center connectivity, sensing, and AI networking. The company emerged from a management buyout of assets previously belonging to Emcore Corporation, which is an aerospace and defense technology company historically known for its work in inertial navigation systems, photonic integrated chips (PICs), and related optical technologies.
In 2024, Emcore sold its chip and wafer operations to HieFo for $2.92 million, but the U.S. government blocked the deal in 2026 over security concerns. The executive order signed on January 2, 2026, prohibits HieFo from holding any interest in Emcore's chip and wafer design and fabrication business and requires full divestment within 180 days.
According to the president's statement, there is credible evidence that suggests HieFo Corporation, which is controlled by a citizen of the People's Republic of China through its acquisition of Emcore Assets, might take action that threatens to impair the national security of the United States. The order also bans evasion attempts and authorizes enforcement by the Attorney General.
The Committee on Foreign Investment in the United States (CFIUS) has been granted broad enforcement powers, including audits, inspections, and weekly compliance reporting. After divestment, HieFo must certify the transfer or destruction of all related intellectual property with CFIUS verifying completion. The executive order also highlights the significance of this case as it marks a new precedent in the use of national security grounds to challenge corporate transactions.
This development has significant implications for the technology sector and raises questions about the extent to which U.S. companies can operate in partnership with Chinese entities, given the complex geopolitical landscape between the two countries. The move also underscores the Trump administration's commitment to protecting American businesses and industries from potential threats.
In response to the news, cybersecurity experts have been quick to weigh in on the significance of this event. "This is a clear example of the U.S. government taking a proactive stance to protect national security," said one expert. "It demonstrates the administration's willingness to use executive power to block transactions that may pose a risk to the country."
Others, however, have raised concerns about the potential impact on the technology sector and the U.S.-China trade relationship. "This move has significant implications for the global semiconductor industry and could undermine trust between American companies and their Chinese partners," said another expert.
As the situation continues to unfold, one thing is clear: this case marks a new chapter in the Trump administration's national security strategy and its approach to corporate transactions involving foreign entities.
Related Information:
https://www.ethicalhackingnews.com/articles/The-Trump-Administrations-Unprecedented-Block-on-a-29-Million-Emcore-Chip-Sale-A-Cautionary-Tale-of-National-Security-Concerns-ehn.shtml
https://securityaffairs.com/186473/security/president-trump-blocks-2-9m-emcore-chip-sale-over-security-concerns.html
https://www.pbs.org/newshour/show/trumps-ai-chip-deal-sparks-legal-questions-and-national-security-concerns
https://thehill.com/homenews/administration/5449275-us-china-ai-chip-deal/
Published: Sun Jan 4 05:04:22 2026 by llama3.2 3B Q4_K_M
