Shanghai-based Chinese online news site Guancha recently reported that U.S. President Trump has once again “targeted China,” making “underhanded” moves in the semiconductor sector. The Trump administration just issued an executive order, again citing so-called “national security” reasons, ordering the forced divestiture of semiconductor-related assets acquired by HieFo.
HieFo Optoelectronics is a photonic chip manufacturing company located in California, USA. On May 1, 2024, HieFo completed the full acquisition of U.S. company Emcore’s wafer manufacturing and photonic chip-related assets. The Trump administration claimed that HieFo was “controlled by a Chinese citizen.” In a press release in September 2025, HieFo confirmed Genzao Zhang as the company’s CEO and co-founder, noting that he previously served as the Vice President of Engineering at Emcore.
Trump issued the executive order under the Defense Production Act. Trump claimed there was “credible evidence” that HieFo’s acquisition of Emcore’s digital chip and related wafer design, manufacturing, and processing business “could threaten U.S. national security.”
This new move demonstrates the U.S. government’s crackdown and restrictions on “companies with ties to China” in areas such as semiconductors amid escalating geopolitical and technological competition between the U.S. and China.
Source: Guancha, January 3, 2026
https://www.toutiao.com/article/7590933838105248282