The U. S. Takes a Stand on Tech Security

In a bold move, the U. S. government has ordered a Chinese-controlled company to reverse a recent tech acquisition. The deal, involving a New Jersey-based semiconductor manufacturer, has raised eyebrows in Washington. The U. S. Treasury Department flagged potential risks to national security, pointing to the sensitive nature of the technology involved. The company in question, HieFo Corporation, is registered in Delaware but is controlled by a Chinese national. It acquired digital chips and related tech from Emcore, a U. S. manufacturer. The Treasury Department expressed concerns about the diversion of critical chip supplies and potential access to proprietary technology. HieFo has been given 180 days to unwind the deal and restrict access to Emcore's technical information. The company has not publicly responded to these developments. Meanwhile, a Chinese government-affiliated publication suggested that the U. S. move reflects broader anxieties about technological competition.The acquisition was not reviewed by the Committee on Foreign Investment in the United States (CFIUS), which prompted a review by its non-notified transactions team. CFIUS identified risks related to intellectual property and proprietary know-how. HieFo had previously stated that the deal would allow operations to continue at Emcore's California facility. The company claimed to have engaged nearly all key staff and inherited decades of innovation in chip manufacturing. Emcore's products include navigation equipment used in defense applications, highlighting the strategic importance of the technology. This development underscores the ongoing tensions between the U. S. and China in the tech sector. It also raises questions about the oversight of foreign investments in critical technologies.