Trump administration blocks $3 million chip deal citing national security concerns

The Donald Trump administration has blocked US photonics company HieFo Corp’s $3 million deal to acquire New Jersey-based aerospace and defense specialist Emcore, citing national security and China-related concerns. In an executive order dated January 2, 2026, Trump said that HiefFo was “controlled by a citizen of the People’s Republic of China” and that it might “might take action that threatens to impair the national security of the United States”. However, the order did not name any individual.

“The Transaction is hereby prohibited, and ownership by HieFo of any interest or rights in any of the Emcore Assets, whether effected directly or indirectly through HieFo, or through HieFo’s partners, subsidiaries, affiliates, or foreign person shareholders (collectively, Affiliates), is also prohibited,” the order stated.