CFIUS reviewed and investigated the transaction under Section 721 and identified a national security risk related to potential access to EMCORE’s IP and diversion of indium phosphide chip supply away from the United States.

True

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oversight

CFIUS completed a review/investigation under Section 721 and issued findings that it identified the specified national security risks regarding EMCORE's IP and potential diversion of indium phosphide chip supply.

Source summary
President Trump ordered HieFo Corporation, a foreign-owned Delaware company, to divest all interests in EMCORE Corporation’s digital chips business after CFIUS determined the transaction posed national security risks. CFIUS reviewed the deal under Section 721 of the Defense Production Act and cited risks from potential access to EMCORE’s intellectual property and the possible diversion of indium phosphide chip supply from the United States. The statement notes HieFo filed only after a CFIUS non-notified review and reminds parties to consider CFIUS jurisdiction, aided by expanded authorities under FIRRMA.
Latest fact check

The U.S. Treasury Department’s official statement on the President’s divestment order for HieFo Corporation’s acquisition of EMCORE’s digital chips business explicitly says that CFIUS "reviewed and investigated this transaction pursuant to Section 721 of the Defense Production Act of 1950" and "identified a national security risk" related to potential access to EMCORE’s intellectual property and the potential diversion of indium phosphide chip supply away from the United States. This language directly matches the substance of the claim, including both the legal basis (Section 721) and the specific nature of the identified risk (IP access and diversion of indium phosphide chips).

The verdict is True because the claim accurately restates the findings and description provided in the official Treasury/CFIUS statement on the transaction.

Timeline

  1. Update · Jan 03, 2026, 07:46 AMTrue
    The U.S. Treasury Department’s official statement on the President’s divestment order for HieFo Corporation’s acquisition of EMCORE’s digital chips business explicitly says that CFIUS "reviewed and investigated this transaction pursuant to Section 721 of the Defense Production Act of 1950" and "identified a national security risk" related to potential access to EMCORE’s intellectual property and the potential diversion of indium phosphide chip supply away from the United States. This language directly matches the substance of the claim, including both the legal basis (Section 721) and the specific nature of the identified risk (IP access and diversion of indium phosphide chips). The verdict is True because the claim accurately restates the findings and description provided in the official Treasury/CFIUS statement on the transaction.
  2. Original article · Jan 02, 2026

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