CaliToday (03/1/2026): In a bold move that underscores Washington's uncompromising stance on technological sovereignty, President Donald Trump issued an executive order on January 2, 2026, effectively dissolving a completed acquisition of a sensitive U.S. semiconductor business. The order targets Higho Optical, a U.S.-based firm, forcing it to relinquish its control over the semiconductor division of Emcore, a prominent aerospace and defense supplier.
A Retrospective Strike on Chinese Influence
While the acquisition was originally finalized in 2024 for an estimated $300 million, the White House now asserts that Higho is "ultimately controlled by Chinese citizens." The administration’s investigation concluded that this ownership structure poses a significant threat, as it provides a potential conduit for actions that could undermine U.S. national security.
The President’s mandate is absolute: Higho has been given a 180-day window to sell all assets related to the Emcore acquisition and completely terminate its control over the division.
The Strategic Value of Aerospace Semiconductors
The decision highlights the critical nature of Emcore’s semiconductor applications. In the modern theater of "America First" defense policy, these chips are not just commercial components; they are vital to:
- Aerospace Navigation: Precise guidance systems for civilian and military aircraft.
- Defense Infrastructure: Hardware used in secure communications and electronic warfare.
- Strategic Advantage: Preventing advanced U.S. chip architecture from entering the supply chains of geopolitical rivals.
Silence from the Boardroom
As of late Saturday, January 3, representatives for both Higho Optical and Emcore have declined to provide an official comment. This silence comes as the industry reels from the implications of a "retrospective veto" a clear signal that deals completed in previous years are no longer safe from scrutiny if they involve sensitive sectors and Chinese interests.
Broader Geopolitical Context: The Chip War Continues
Analysts view this as a significant escalation in the ongoing strategic competition between the U.S. and China. By retroactively unwinding a deal from 2024, the Trump administration is signaling a "zero-tolerance" policy regarding foreign influence in the domestic tech stack.
"This is about more than one company," noted a senior trade analyst. "It is about creating a protective 'moat' around the U.S. defense industrial base. The message to foreign investors is clear: if there is even a shadow of a connection to Beijing, the deal is a non-starter."
As the 180-day clock begins to tick, all eyes will be on the divestment process to see which domestic or allied buyers step in to reclaim this critical piece of the American semiconductor puzzle.