President Trump just dropped a bombshell by blocking a major tech deal that could have handed critical U.S. semiconductor assets to foreign control.
According toThe Hill, on Friday, January 2, 2026, Trump signed an executive order stopping a proposed merger between Delaware-based HieFo Corp., controlled by a Chinese citizen, and New Jersey’s Emcore Corp., citing serious national security risks tied to China.
For American taxpayers, this isn’t just about chips and circuits—it’s about the potential financial burden of losing control over a vital industry that underpins everything from defense to everyday tech, risking billions in economic fallout if foreign dominance takes hold.
Let’s rewind to 2024, when HieFo and Emcore first announced a $2.92 million deal for HieFo to snap up Emcore’s digital chips business and indium phosphide wafer fabrication operations.
Fast forward to last month, December 2025, and the Trump administration was already signaling a hard line with plans to slap tariffs on Chinese semiconductor imports come June 2027.
Now, with this executive order, the deal is dead in the water, proving that the administration isn’t just talking tough—it’s acting to protect U.S. interests.
The executive order specifically bars HieFo, led by CEO and co-founder Genzao Zhang, from acquiring any stake in Emcore’s chip design, fabrication, or processing assets.
Trump didn’t mince words, stating, “There is credible evidence that leads me to believe that HieFo Corporation … might take action that threatens to impair the national security of the United States,” as noted in the order itself.
Well, if that’s not a wake-up call to keep our tech backbone out of risky hands, what is? The last thing we need is a foreign-controlled entity holding the keys to our defense and economic security.
Under the order, HieFo has a tight 180 days to completely divest from any interest in Emcore’s assets—no ifs, ands, or buts. The Committee on Foreign Investment in the United States is tasked with overseeing this divestment, ensuring that the separation is clean and final.
That’s a short leash, and rightly so, because every day that passes with this entanglement unresolved is a day our national interests hang in the balance.
The U.S. has been vocal about pushing back against what it sees as China’s aggressive bid to dominate the semiconductor sector, a concern echoed by officials across the board.
U.S. Trade Representative Jamieson Greer didn’t hold back, saying, “China’s targeting of the semiconductor industry for dominance is unreasonable and burdens or restricts U.S. commerce and thus is actionable,” as reported by Reuters.
Translation: enough is enough—America won’t sit idly by while strategic industries are gobbled up, and it’s high time we prioritize our own workers and innovation over globalist pipe dreams.