In a significant move highlighting ongoing geopolitical tensions, the administration of former US President Donald Trump has intervened to stop a multi-million dollar acquisition in the aerospace and defense sector. The deal, involving a US photonics company and a New Jersey-based specialist, was formally blocked on grounds of protecting national security, with specific concerns raised about connections to China.
The Presidential Order That Halted the Deal
The decisive action came through an executive order issued on January 2, 2026. In the order, President Trump stated that the acquiring company, HieFo Corp, was "controlled by a citizen of the People's Republic of China." This control, the administration argued, created a risk that the company "might take action that threatens to impair the national security of the United States." While the order pointed to Chinese control, it did not publicly name any specific individual behind HieFo.
The order was unequivocal in its directive. It declared, "The Transaction is hereby prohibited, and ownership by HieFo of any interest or rights in any of the Emcore Assets... is also prohibited." This prohibition extends to any attempts to gain control indirectly through partners, subsidiaries, or affiliates of HieFo.
Divestment Orders and Deal Details
Beyond just blocking the future acquisition, the US administration mandated a rollback. HieFo was ordered to "divest all interests and rights in the Emcore Assets, wherever located," within a strict timeline of 180 days. The assets in question are comprehensive, including:
- Contracts and inventory
- Tangible property, parts, and fixed assets
- Accounts receivable and permits
- Real property owned or leased by Emcore
- Intellectual property
The deal at the center of this storm was valued at approximately $3 million. According to a Reuters report, HieFo had agreed to purchase Emcore's chips business and its indium-phosphide wafer-fabrication operations for $2.92 million. At the time the deal was initiated, Emcore was a publicly traded company, though it has since been taken private.
The People Behind the Companies
The connection between the two firms is notably close. HieFo was co-founded by Genzao Zhang, a former Vice President of Engineering at Emcore, and Harry Moore, described on his LinkedIn profile as a former senior sales director at the same aerospace and defense firm. This insider knowledge likely made the assets particularly attractive to HieFo but also potentially raised red flags for regulators scrutinizing the flow of sensitive technology.
This decision underscores the continued and intense scrutiny that cross-border transactions, especially those involving dual-use technologies in aerospace and defense, face from the US Committee on Foreign Investment (CFIUS). It reflects a persistent policy stance aimed at preventing foreign adversaries, particularly China, from accessing critical American technological assets that could have military applications.
The blocking of the HieFo-Emcore deal serves as a clear reminder to the global tech and defense industries that national security considerations will often override commercial interests when sensitive assets are involved. It signals that such scrutiny will remain a major factor for any international mergers and acquisitions in strategic sectors for the foreseeable future.
