President Donald Trump on Friday moved to block a semiconductor transaction involving a U.S.-based firm controlled by a Chinese national, issuing an executive order that halts a planned acquisition over national security concerns tied to China’s growing footprint in critical technologies.
In the order, Trump said there is “credible evidence” suggesting that HieFo Corporation, a company organized under Delaware law but controlled by a citizen of the People’s Republic of China, could take actions that threaten U.S. national security. The order underscores the administration’s hard line on foreign influence in sensitive sectors, particularly semiconductors.
HieFo is headquartered in Delaware, while Emcore Corporation is based in New Jersey. Genzao Zhang, identified as HieFo’s CEO and co-founder, leads the firm at the center of the blocked deal.
Trump’s action specifically prohibits HieFo from acquiring the assets that make up Emcore’s digital chips business, including related wafer design, fabrication and processing operations. The executive order blocks “ownership by HieFo of any interest or rights in any of the Emcore Assets,” effectively unwinding a transaction announced last year.
In 2024, HieFo and Emcore disclosed a $2.92 million agreement under which HieFo would acquire Emcore’s chips business and indium phosphide wafer fabrication operations. Under the new order, HieFo has 180 days to divest from Emcore. Enforcement will be overseen by the Committee on Foreign Investment in the United States, the federal panel tasked with reviewing foreign investments for national security risks.
The move aligns with the Trump administration’s broader effort to counter what U.S. officials describe as China’s aggressive push to dominate the semiconductor industry. Semiconductors are widely viewed as a foundational technology with implications for defense, communications and economic competitiveness, and Washington has increasingly treated the sector as a strategic priority.
Last month, the administration announced plans to impose tariffs on Chinese semiconductor imports beginning in June 2027, signaling that pressure on Beijing’s tech ambitions will continue. U.S. Trade Representative Jamieson Greer said China’s actions in the sector justify a forceful response.
“China’s targeting of the semiconductor industry for dominance is unreasonable and burdens or restricts U.S. commerce and thus is actionable,” Greer said in a statement reported by Reuters.
Trump’s order reflects the administration’s view that even relatively small transactions can pose outsized risks when they involve sensitive technologies and foreign control linked to adversarial governments. By invoking national security authority, the president reinforced the message that U.S. chipmaking capabilities are off-limits to foreign influence tied to China.
The decision also highlights the expanding role of executive action and federal review in shaping the future of American industry. As the U.S. seeks to rebuild domestic manufacturing capacity and protect key supply chains, deals involving semiconductors are likely to face heightened scrutiny.
For supporters of the administration’s approach, the blocked deal is another example of Trump putting national security first and drawing a firm line against Chinese encroachment in critical industries. For critics, it underscores how geopolitical tensions are reshaping global commerce. Either way, the order signals that semiconductor transactions involving China-linked entities will remain under intense watch as Washington presses ahead with its economic and security agenda.
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