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One Company Removed from List of Mainland Chinese VEUs for High-Tech Exports

The U.S. Department of Commerce’s Bureau of Industry and Security has issued a final rule that, effective 5 December, removed Semiconductor Manufacturing International Corporation as a validated end-user in mainland China. BIS states that this change was made at the company’s request and not in response to activities of concern.

Authorisation VEU is a mechanism to facilitate increased high-technology exports to companies in mainland China and India that have a verifiable record of civilian end-uses for such items. End-users qualified as VEUs are eligible to receive a wide range of specified items on the Commerce Control List under this general authorisation instead of under individual transaction-specific export licences. Eligible items may include commodities, software and technology, except those controlled for missile technology or crime control reasons.

The initial BIS list of approved VEUs was issued in October 2007 and included only five companies. That list has been gradually expanded and currently includes 11 authorised companies and 41 eligible facilities. The authorised VEUs are Advanced Micro Devices China Inc., Advanced Micro-Fabrication Equipment Inc. China, Applied Materials (China) Inc., Boeing Tianjin Composites Co. Ltd., CSMC Technologies Corporation, Intel Semiconductor (Dalian) Ltd., Lam Research Service Co. Ltd., Samsung China Semiconductor Co. Ltd., Shanghai Huahong Grace Semiconductor Manufacturing Corporation Ltd., SK hynix Semiconductor (China) Ltd. and SK hynix Semiconductor (Wuxi) Ltd.

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