What happened
President Trump orders divestment in $2.9M chips deal after determining that the 2024 sale of Emcore Corp.’s indium phosphide semiconductor business to HieFo Corp. posed national security risks. On January 2, 2026, President Donald Trump signed an executive order requiring HieFo to divest the assets within 180 days, citing concerns over foreign ownership and potential exposure of sensitive semiconductor technology. The order follows a review by the Committee on Foreign Investment in the United States (CFIUS), which found credible evidence the transaction could undermine U.S. security interests.
Who is affected
Emcore Corp., HieFo Corp., and customers reliant on specialized semiconductor components are directly affected. The decision also impacts firms operating in sensitive technology supply chains subject to foreign investment scrutiny.
Why CISOs should care
The move highlights how geopolitical and regulatory actions can abruptly reshape technology supply chains. CISOs must factor ownership, jurisdiction, and government intervention risk into vendor and hardware trust models.
3 practical actions
-
Review supplier ownership: Identify vendors with foreign ownership in sensitive technology areas.
-
Update supply chain risk models: Include CFIUS and geopolitical enforcement scenarios.
-
Plan for disruption: Prepare contingencies for sudden vendor divestments or restrictions.