Trump orders China-linked chip deal unwound
A closed chip deal is being reopened, as Washington tightens the screws on China-linked ownership.
President Donald Trump has ordered the unwinding of a small US semiconductor-related deal, citing national security concerns tied to China. In an executive order dated 2 January 2026, Trump said there was ‘credible evidence’ that HieFo Corporation is controlled by a citizen of the People’s Republic of China, and that the acquisition ‘might take action that threatens to impair the national security of the United States.’
The order bars HieFo from owning any interest in the purchased Emcore assets and gives the company 180 days to divest them (unless the US foreign-investment review committee grants an extension). It also imposes restrictions meant to prevent access to sensitive, non-public technical information while the divestment is pending.
The transaction at the centre of the order was completed on 30 April 2024, and involved Emcore’s digital chips business and indium-phosphide wafer fabrication operations. Emcore previously stated that the sale price was approximately $2.92 million, while other reports described it as a roughly $2.9 million deal that also included the assumption of $1 million in liabilities.
Officials did not publicly specify the risk, but the executive order follows a review by the Committee on Foreign Investment in the United States (CFIUS), the interagency body that screens certain foreign deals for national security implications. HieFo and Emcore had not publicly responded at the time of publication, and the move is likely to reinforce the message that Washington is prepared to intervene, even after a deal has closed, when advanced manufacturing and China-linked ownership intersect.
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