United States of America: President issued Executive Order directing divestment of EMCORE Corporation assets acquired by HieFo Corporation

On 2 January 2026, the President issued an Executive Order regarding the acquisition of certain assets of EMCORE Corporation by HieFo Corporation pursuant to Section 721 of the Defense Production Act of 1950. The Executive Order (EO) determined that the acquisition completed on 30 April 2024 of the digital chips and related wafer design, fabrication, and processing businesses of EMCORE Corporation by HieFo Corporation, believed to be controlled by a Chinese citizen, might threaten to impair the national security of the United States and that provisions of law other than Section 721 and the International Emergency Economic Powers Act did not provide adequate authority to protection national security. The EO prohibited the Transaction and any ownership or rights held by HieFo Corporation in the assets. The EO required divestment within 180 calendar days subject to extension by the Committee on Foreign Investment in the United States. The EO imposed immediate access restrictions, limits on transfers, restructuring and asset relocation, authorised audits, certifications, weekly compliance reporting, review of third-party transfers, enforcement and verification measures, tolling during lapses in appropriations, publication in the Federal Register, transmittal by the Secretary of the Treasury, and reserved authority to issue further orders.