The White House has issued an order prohibiting HieFo Corporation, a Delaware-based company controlled by a citizen of the People’s Republic of China, from owning or controlling any assets acquired from EMCORE Corporation. The acquisition in question involved digital chips and related wafer design, fabrication, and processing businesses, and was completed on April 30, 2024.
President Donald J. Trump stated in the order: "There is credible evidence that leads me to believe that HieFo Corporation... might take action that threatens to impair the national security of the United States." He added that existing laws outside of section 721 of the Defense Production Act and the International Emergency Economic Powers Act do not provide sufficient authority to address this issue.
Under the terms set out in the order, HieFo must divest all interests and rights in the EMCORE assets within 180 days unless extended by the Committee on Foreign Investment in the United States (CFIUS). The divestment includes contracts, inventory, tangible property, intellectual property, and other related assets. During this period, HieFo is barred from granting access to these assets or associated non-public technical information to anyone not employed by HieFo unless approved by CFIUS.
Additional requirements include weekly compliance certifications from HieFo to CFIUS until divestment is complete. The company is also prohibited from dissolving or reorganizing its structure or transferring any interest in these assets without approval. Any attempts to circumvent these restrictions are expressly forbidden.
Before completing any sale or transfer of these assets to a third party, HieFo must notify CFIUS and allow at least 30 days for review. CFIUS will consider factors such as whether potential buyers are U.S. citizens and their ability to comply with national security requirements.
CFIUS is authorized to audit HieFo for compliance at no cost to the government and may impose additional conditions if deemed necessary for national security. Once divestment is certified as complete by CFIUS, verification procedures will be concluded within 90 days.
President Trump reserved his authority to issue further orders regarding this transaction if needed for national security purposes. The order will be published in the Federal Register, with publication costs covered by the Department of Treasury.
"Any deadline or time limitation under this order imposed on CFIUS shall be tolled during a lapse in appropriations," according to the text of the order.
The Secretary of Treasury has been directed to transmit copies of this order to relevant parties named within it.
