Hiefo Corporation Acquires Emcore Assets: Impact Discussed at White House

The acquisition of Emcore Corporation’s assets by HieFo Corporation has raised significant national security concerns. This deal was completed on April 30, 2024, and involves essential digital chips and wafer design technologies. HieFo Corporation, based in Delaware, is controlled by an individual from the People’s Republic of China.

Background of the Acquisition

HieFo Corporation’s takeover has sparked scrutiny due to its potential implications for U.S. national security. The Defense Production Act of 1950 authorized the assessment of such transactions. Following the acquisition, the federal government took decisive action regarding the ownership of Emcore’s assets.

Key Actions Ordered by the U.S. Government

On January 2, 2026, a presidential order outlined the following measures:

• The acquisition has been prohibited. HieFo must divest all interests in Emcore’s assets within 180 days.
• The order restricts HieFo from sharing any access to Emcore’s non-public technical information until divestment is verified.
• HieFo is required to submit weekly compliance reports to the Committee on Foreign Investment in the United States (CFIUS).

Divestment Requirements

To comply with the order, HieFo must take several key steps:

• Divest all rights and interests in Emcore’s assets, including inventory and intellectual property.
• Provide written certification to CFIUS upon successful divestment.
• Ensure that no changes to the legal structure or physical assets occur that could affect compliance.

CFIUS Oversight

CFIUS will monitor the divestment process closely. They will have the authority to conduct audits without incurring costs. This oversight extends to verifying that all intellectual property associated with Emcore’s assets is either destroyed or transferred as mandated.

Future Steps

HieFo must notify CFIUS in advance of any intended buyer for the assets. CFIUS will then have 30 days to review the proposed transfer. Concerns regarding national security will heavily influence these evaluations.

The implications of this order are significant, reflecting the U.S. government’s commitment to safeguarding national security during foreign acquisitions. The situation highlights ongoing tensions surrounding international corporate transactions, particularly those involving technology sectors critical to national interests.