【By Observer News, Qi Qian】

President Trump once again targeted China, taking a dark action in the semiconductor sector.

According to Bloomberg and Hong Kong's South China Morning Post, on January 2nd local time, Trump issued an executive order, once again citing so-called "national security" reasons to order the forced divestiture of assets related to semiconductors acquired by HieFo Company.

Trump claimed that HieFo Company is "controlled by a Chinese citizen".

According to the company's official website, HieFo is an optical chip manufacturing company located in California, USA. On May 1st, 2024, HieFo completed the full acquisition of Emcore's wafer manufacturing and optical chip-related assets.

HieFo's factory in the United States, Company Official Website

The report said that Trump issued the aforementioned executive order under the Defense Production Act.

Trump claimed that there is "credible evidence" showing that HieFo's acquisition of Emcore's digital chip and related wafer design, manufacturing, and processing businesses "may threaten U.S. national security." However, he provided no evidence.

White House stated in a statement that this executive order prohibits HieFo from retaining any ownership or rights over Emcore's assets, and gives the company up to 180 days to divest these assets, with supervision by the Committee on Foreign Investment in the United States (CFIUS).

According to the executive order, before the divestiture is completed and verified, HieFo is prohibited from granting access to the assets or any non-public technical information, and faces strict restrictions on restructuring, transferring, or relocating its business. CFIUS has the right to audit the company and implement additional measures to ensure compliance.

The South China Morning Post mentioned that this means the $3 million transaction between the two companies on April 30th, 2025, was effectively canceled.

In a press release in May 2025, Emcore confirmed that the transaction with HieFo involved the transfer of most of its terminated chip business assets, including equipment, contracts, intellectual property, and inventory related to InP wafer manufacturing at its location in Alhambra, California.

HieFo introduces itself on its official website as "an optical chip manufacturing company based in California, USA, dedicated to providing advanced optical chip solutions for data centers, telecommunications, AI interconnects, and optical sensing."

The company mentioned that on May 1st, 2024, HieFo successfully completed the full acquisition of Emcore's wafer manufacturing and optical chip-related assets through a management buyout (MBO). This strategic move not only marks the perfect inheritance of Emcore's more than four decades of optoelectronic technology, but also lays a solid foundation for HieFo's further expansion and leadership in the global optoelectronics market.

The South China Morning Post also mentioned that in a press release in September 2025, HieFo confirmed Genzao Zhang as the company's CEO and co-founder, and pointed out that he previously served as the engineering vice president of Emcore.

The report suggests that this move highlights the U.S. government's crackdown and restriction on companies linked to China in sectors such as semiconductors amid the intensifying Sino-U.S. geopolitical and technological competition.

From the Biden administration to the Trump administration, the U.S. has implemented a series of chip export restrictions to contain and suppress China's technological development.

After Trump took office in 2025, the U.S. government banned NVIDIA from exporting H20 chips to China until NVIDIA agreed to pay 15% of its sales in China to the U.S. government, after which the export license for the chip was restored. Last month, Trump allowed NVIDIA to export H200 artificial intelligence (AI) chips to China, but also made the same requirement to take 25% from it.

However, Chinese companies are working hard to develop domestic AI chips that can replace NVIDIA, capturing the market share that NVIDIA once dominated. For example, Huawei announced in September its product iteration roadmap for the Ascend AI chip over the next three years, while internet giants such as Alibaba, Tencent, Baidu, and ByteDance have also increased their investments in chip R&D and design, striving to gain greater autonomy and control over the supply chain.

On December 23rd, the Office of the U.S. Trade Representative (USTR) stated that tariffs will be imposed on semiconductor products from China starting June 2027, with specific tariff rates to be announced at least one month in advance.

Regarding this, Lin Jian, spokesperson for the Ministry of Foreign Affairs, responded that China firmly opposes the U.S. imposing tariffs and unfairly suppressing Chinese industries. The U.S. approach disrupts the stability of the global supply chain and hinders the development of the semiconductor industry in various countries, harming both sides.

"We urge the U.S. to quickly correct its wrong practices, guided by the important consensus reached between the two heads of state. We should resolve each other's concerns through dialogue on the basis of equality, respect, and mutual benefit, properly manage differences, and maintain the stable, healthy, and sustainable development of Sino-U.S. relations. If the U.S. continues to act unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests," Lin Jian said.

This article is exclusive to Observer News. Reproduction without permission is prohibited.

Original: toutiao.com/article/7590933838105248282/

Statement: The article represents the personal views of the author.