Title: US President Orders Forced Divestment of Semiconductor Assets Acquired by HieFo Corporation for National Security Reasons
The US President has issued an executive order mandating the forced divestment of semiconductor assets acquired by HieFo Corporation, a company allegedly controlled by a Chinese national, due to national security concerns. The order cites credible evidence that HieFo's acquisition of EMCORE Corporation's digital chips and related businesses poses a threat to US national security. HieFo has been given 180 days to divest the assets under the oversight of the Committee on Foreign Investment in the United States (CFIUS).
The executive order prohibits HieFo from retaining any ownership or rights in the EMCORE assets and restricts the company from granting access to the assets or any non-public technical information until the divestment is completed and verified. CFIUS is authorized to audit the company and enforce compliance with additional measures if necessary. The transaction between HieFo and EMCORE, completed on April 30, 2024, is effectively unwound as a result of the order.
This action reflects the US government's increased scrutiny of Chinese-linked investments in critical US semiconductor and advanced manufacturing sectors amid growing geopolitical and technological competition with China. The move underscores the importance of safeguarding national security interests in sensitive industries.