Regarding the Acquisition of Certain Assets of Emcore Corporation by Hiefo Corporation

1/2/2026

Executive Orders

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Action Summary

Background: Addresses HieFo Corporation’s acquisition of the digital chip and related wafer design, fabrication, and processing assets of EMCORE Corporation, a transaction completed on April 30, 2024.
National Security Concern: Credible evidence indicates that HieFo, controlled by a citizen of the People’s Republic of China, may take actions that threaten U.S. national security, justifying the use of Defense Production Act authority.
Prohibition of the Transaction: The order prohibits HieFo—and its Affiliates—from holding any interest or rights in the Emcore Assets, whether directly or indirectly, with specific exclusions for U.S. nationals on its Board.
Mandatory Divestment: HieFo is required to divest all interests and rights in the Emcore Assets within 180 calendar days (subject to extension by CFIUS), including tangible and intangible property.
Access Restrictions: Until divestment is verified by CFIUS, HieFo must restrict access to all non-public technical information and related assets to unauthorized persons, implementing necessary measures promptly.
Corporate and Transfer Limitations: HieFo and its Affiliates are prevented from reorganizing, dissolving, or transferring interests in the assets in any way that could impede compliance with the order, without prior CFIUS approval.
Audit and Compliance Measures: CFIUS is empowered to audit HieFo at no cost to ensure compliance, with HieFo required to certify weekly its adherence to the order until full divestment is certified.
Conditions on Future Sales/Transfers: Any sale or transfer by HieFo must be reported to CFIUS, abide by a 30-day waiting period for review, and meet stringent criteria to protect U.S. national security.
Enforcement and Legal Provisions: The Attorney General is authorized to enforce the order, and measures are provided to prevent circumvention; if any part of the order is invalidated, its remaining provisions shall continue in effect.
Publication and Reserved Authority: The order will be published in the Federal Register, with further actions reserved as necessary to protect national security.

Risks & Considerations

The Executive Order highlights national security concerns related to foreign ownership of sensitive technology assets. For Vanderbilt University, this could impact research collaborations with entities involved in wafer design and fabrication, particularly if they are linked to foreign organizations.
There are potential compliance risks if Vanderbilt engages in partnerships or receives funding from companies affected by this order. The university must ensure strict adherence to federal regulations to avoid penalties.
The divestment requirements and restrictions on information sharing could affect any ongoing or future projects that involve international partners or collaborators. Vanderbilt may need to reassess its international partnerships and data exchange policies.
Vanderbilt’s technology transfer and intellectual property policies may require updates to align with new national security standards and avoid indirect involvement in transactions deemed risky by the government.

Impacted Programs

School of Engineering may need to review its research projects involving digital chips and related technologies to ensure compliance with this order.
The Office of General Counsel should evaluate and possibly update legal frameworks surrounding international collaborations and asset acquisitions.
Vanderbilt’s International Strategy must consider potential shifts in policy regarding collaborations with foreign entities, particularly those connected to sensitive technology sectors.

Financial Impact

Vanderbilt might face restrictions in obtaining funding from international sources linked to the technology sectors mentioned in the order, necessitating a diversification of funding sources.
There could be increased costs associated with ensuring compliance and restructuring partnerships to adhere to the new regulations.
Opportunities may arise for Vanderbilt to engage in research projects focused on national security and technology, especially those funded by domestic agencies following this policy shift.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential changes to international collaborations.)

Key Actions

Vanderbilt Law School should monitor developments and legal implications of the executive order, focusing on the national security aspects and the role of the Defense Production Act. This could be an opportunity to enhance curriculum on international business law and national security law.
The Owen Graduate School of Management might explore case studies on the impact of executive decisions on corporate acquisitions, regulatory compliance, and national security concerns. This can be integrated into courses on global business strategy.
Vanderbilt’s Center for Technology Transfer and Commercialization should assess potential risks in international collaborations and technology transfers. Developing guidelines to navigate compliance with national security regulations can be beneficial.
The Political Science Department is encouraged to research the geopolitical impacts of such executive orders, which could contribute to academic publications and policy-making discussions.
Vanderbilt’s Office of Federal Relations should engage with policymakers to understand the broader implications of CFIUS-related actions, ensuring the university remains informed about potential regulatory changes affecting academic partnerships and research collaborations.

Opportunities

Vanderbilt has the opportunity to position itself as a thought leader by hosting symposiums or workshops on national security and international trade law. This can attract experts, policymakers, and academics to discuss and develop best practices.
The university can leverage this situation to expand research initiatives on the intersection of technology, security, and policy, potentially opening channels for new funding and collaborations with government agencies.

Relevance Score: 3 (Some adjustments may be needed to align Vanderbilt’s programs with emerging legal and geopolitical considerations.)

Average Relevance Score: 3.6

Timeline for Implementation

7 calendar days: HieFo must implement necessary measures or controls to prevent unauthorized access to the Emcore Assets, as required to be in place not later than 7 days after the date of this order (or after notification from CFIUS, whichever applies).
30 calendar days: A minimum waiting period must elapse following HieFo’s notification of an intended sale or transfer before such transaction can proceed without CFIUS objection.
90 calendar days: CFIUS is required to conclude its verification procedures after receiving certification of the Divestment from HieFo.
180 calendar days: HieFo is mandated to divest all interests and rights in the Emcore Assets within 180 calendar days from the date of the order, unless extended by CFIUS.

Relevance Score: 5

Impacted Government Organizations

Committee on Foreign Investment in the United States (CFIUS): CFIUS is central to this order, as it is empowered to oversee, verify, and enforce the divestment requirements and other conditions imposed on HieFo Corporation, ensuring that the transaction does not impair U.S. national security.
Department of the Treasury: The Treasury is directed to transmit a copy of this order to the appropriate parties and to bear the costs of its publication, highlighting its role in the administrative and procedural aspects of the order.
Attorney General: The Attorney General is explicitly authorized to take enforcement steps under section 721(d)(3), thereby playing a key role in ensuring compliance with the order through legal and regulatory measures.

Relevance Score: 2 (Between 3 and 5 federal agencies are directly affected by this order.)

Responsible Officials

Committee on Foreign Investment in the United States (CFIUS) – Responsible for verifying and enforcing compliance with the divestment and security provisions, including conducting audits and imposing measures as necessary.
Attorney General – Authorized to take enforcement actions under section 721(d)(3) to ensure adherence to the order.
Secretary of the Treasury – Tasked with transmitting a copy of the order to designated parties and overseeing its publication, including bearing the relevant publication costs.

Relevance Score: 5 (Directives impact top executive and Cabinet-level officials responsible for critical national security and enforcement measures.)