President Trump blocks $2.9M Emcore chip sale over security concerns

President Trump blocked a $2.9 million Emcore chip sale, citing national security risks connected with HieFo Corporation’s control of Emcore’s technology. The article notes that Emcore sold its chip and wafer operations to HieFo for $2.92 million in 2024, but the deal was blocked by the U.S. government in 2026.

An executive order signed on 2 January 2026 prohibits HieFo from holding any interest in Emcore’s chip and wafer design and fabrication business and mandates full divestment within 180 days, subject to oversight by the Committee on Foreign Investment in the United States. Until divestment is complete, HieFo cannot access assets or sensitive information or restructure the assets without approval.

The order grants CFIUS broad enforcement powers, including audits and weekly compliance reporting, and requires after-divestment certification of the transfer or destruction of related intellectual property, with enforcement possible by the Attorney General. According to the executive order, the action aims to prevent potential harm to U.S. national security from foreign control of Emcore’s assets.