Trump Blocks Major Merger
President Donald Trump on Friday signed an executive order stopping a proposed semiconductor transaction involving a U.S. technology company and a firm linked to China, warning that the deal posed a potential threat to America’s national security.
The order blocks HieFo Corporation from acquiring sensitive chip-related assets from Emcore Corp., citing “credible evidence” that the transaction could allow foreign influence over critical U.S. semiconductor technology.
According to the executive order, HieFo — while incorporated in Delaware — is controlled by a citizen of the People’s Republic of China. President Trump said that control raised serious concerns about whether the company could take actions that would undermine U.S. economic and national security interests.
HieFo is led by CEO and co-founder Genzao Zhang. Emcore is headquartered in New Jersey and operates in advanced semiconductor manufacturing, including digital chips and wafer fabrication.
Deal Halted, Forced Divestment Ordered
Under the order, HieFo is barred from acquiring Emcore’s digital chip assets, including wafer design, fabrication, and processing operations. The administration also directed HieFo to divest any existing interest in Emcore within 180 days.
The transaction stems from a 2024 agreement in which HieFo planned to purchase Emcore’s chip business and indium phosphide wafer fabrication operations for approximately $2.92 million.
Oversight and enforcement of the order will be handled by the Committee on Foreign Investment in the United States, the federal panel tasked with reviewing foreign investments that could affect U.S. national security.
Broader Push to Protect U.S. Chip Industry
The move comes as the Trump administration continues efforts to counter China’s growing influence in the global semiconductor industry — a sector widely viewed as vital to America’s economic strength, military readiness, and technological leadership.
U.S. officials have repeatedly warned that China has aggressively targeted the semiconductor industry in an effort to dominate supply chains and gain access to advanced Western technology.
Last month, the administration announced plans to impose tariffs on Chinese semiconductor imports beginning in June 2027, reinforcing its push to protect domestic manufacturing and reduce reliance on foreign adversaries.
U.S. Trade Representative Jamieson Greer said China’s actions in the chip sector unfairly burden U.S. commerce and justify firm countermeasures, according to Reuters.
America-First Technology Policy
The executive order underscores President Trump’s broader America-first strategy focused on safeguarding critical industries, strengthening domestic production, and preventing strategic U.S. technology from falling under foreign control.
For supporters of tougher trade enforcement and stronger national security protections, the decision reflects a continued effort to put U.S. workers, innovation, and security first.
