Applied Materials and Sanan Optoelectronics Resume Partnership

Applied Materials has resumed its delivery and services to Sanan Optoelectronics after a business halt since Sanan named in the red-flag list of “unverified” entities by the U.S. government, reported China Securities Journal, a media under Xinhua News Agency, on April 22.

Sanan Optoelectronics was one of the 37 Chinese companies and schools added by the U.S. Commerce Department in a red-flag list of unverified entities on April 10. The U.S. government suggested that U.S. companies should treat companies on the list with caution and trading with those companies would require new license applications.

A report of Nikkei Asian Review then covered that Applied Materials has paused services and delivery to Sanan after the list released. The U.S. company also withdrew employees and cease all service activities.

Sanan then responded that it has sent an application asking for being removed from the list and sent a team to the U.S. to fully understand the reason. At the same time, Sanan indicated that its business operation would not be affected. The Chinese LED maker said Applied Materials is not the only equipment provider and other Chinese suppliers also offer similar equipment.

On April 22, a report of China Securities Journal cited its source from Sanan, noting that Applied Materials has resumed its services and deliveries to the Chinese company after Sanan signed an agreement noting that it will not use the equipment on purposes banned by the U.S. trading laws.

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