Washington: US President Donald Trump signed an executive order on Friday blocking HieFo Corp.'s acquisition of semiconductor-related assets from Emcore Corp., citing national security concerns as the reason.

According to Anadolu Agency, the order specifically targets the acquisition due to HieFo being a Delaware-based company that is formed and controlled by a Chinese citizen. This acquisition involved Emcore assets related to digital chips and associated wafer design, fabrication, and processing operations, as noted by the White House.

In 2024, the companies had announced the completion of a $2.92 million sale that included Emcore's New Jersey-based chip business and indium phosphide wafer fabrication operations. The executive order highlighted that the deal "threatens to impair the national security of the United States," marking the administration's ongoing efforts to restrict Chinese access to advanced semiconductor technologies.

The order mandates that HieFo divest these assets within 180 days unless an extension is granted by the Committee on Foreign Investment in the United States, a federal panel responsible for reviewing transactions involving US companies for national security risks.