Uncle Sam to Chinese Buyer: Sell Back Those U.S. Chips or Else!
Published Date: 1/8/2026
Presidential Document
Summary
HieFo Corporation, owned by a Chinese citizen, bought important parts of EMCORE Corporation that make digital chips. The U.S. government says this deal could hurt national security and is ordering HieFo to sell those parts back within 180 days. This means HieFo must give up all related assets, contracts, and property to protect America’s tech future.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 4 costs, 0 mixed.
Forced divestment within 180 days
The President ordered that HieFo Corporation’s purchase of EMCORE’s digital chip businesses (the Transaction that closed April 30, 2024) is prohibited and that HieFo must divest all interests in the Emcore Assets no later than 180 calendar days after January 2, 2026, unless CFIUS extends that deadline. The order explicitly bars HieFo (and its affiliates) from owning those assets and notes U.S. nationals on HieFo’s board as of November 26, 2025 are not treated as affiliates.
IP must be destroyed or transferred and certified
As part of the Divestment, HieFo must destroy or transfer all intellectual property associated with the Emcore Assets and certify in writing to CFIUS that the destruction or transfer is complete. CFIUS is authorized to require auditing of HieFo and its affiliates, at no cost to CFIUS, and will conclude verification procedures within 90 calendar days after receiving HieFo’s certification of Divestment.
Immediate access limits and weekly reporting
From the date of the order until divestment is verified, HieFo must not grant access to the Emcore Assets or any non-public technical information to persons who are not HieFo personnel, and within 7 calendar days HieFo must put in place measures or controls required by CFIUS to prevent prohibited access. HieFo must also certify weekly to CFIUS that it is in compliance and report efforts and a timeline for completing the Divestment.
CFIUS inspection, buyer notice, and 30-day review
CFIUS is authorized to inspect premises, copy books and records, audit IT systems, and interview HieFo officers, employees, or agents to verify compliance. HieFo may not complete any sale or transfer of Emcore Assets until it notifies CFIUS of the intended buyer and 30 calendar days have passed without CFIUS objection; CFIUS may impose conditions or other measures and the Attorney General may take enforcement steps under section 721(d)(3).
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