VZCZCXRO5519
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #9682/01 2610645
ZNR UUUUU ZZH
R 180645Z SEP 06 ZFF4
FM AMEMBASSY BEIJING
TO RUCPDOC/USDOC WASHDC
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHGZ/AMCONSUL GUANGZHOU 1462
RUEHC/SECSTATE WASHDC 7198
RHEHNSC/NSC WASHDC
RUEAHLC/DEPT OF HOMELAND SECURITY WASHDC

UNCLAS SECTION 01 OF 02 BEIJING 019682 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/BIS/OEA/TANDRUKONIS/MOBRIEN/LLAUCIUS 
USDOC FOR 532/BIS/OEE/JSONDERMAN 
USDOC FOR OIO/ADESSARAN 
AMCONSUL GUANGZHOU FOR FCS AND POL/ECON 
STATE FOR EAP/CM 
STATE FOR EB/ESP 
NSC FOR PROSTRATE 
NSC FOR ASIA 
DEPARTMENT OF HOMELAND SECURITY FOR ICE/NATIONAL SECURITY 
UNIT 
 
E.O. 12958: N/A 
TAGS: BEXP CH ETRD ETTC PREL
SUBJECT: PRE-LICENSE CHECK: D360560 XIAMEN CHANGELIGHT 
 
REF: USDOC 4139 (07/19/06) 
 
¶1. Unauthorised disclosure of the information provided below 
is prohibited 
by Section 12(c) of the Export Administration Act. 
 
¶2. REFTEL requested a Pre-License Check (PLC) to be conducted 
at the facilities of 
XIAMEN CHANGELIGHT CO. LTD, No. 124 Chuang Ye Building, 
Pioneering Park, Xiamen, China 
(86-59-2392-1328) to determine the reliability of this 
company to receive U.S.-controlled 
items and technology. BIS License Application D360560 lists 
XIAMEN CHANGELIGHT as the 
potential ultimate consignee of arsine and phosphine 
chemicals to be used in the metal 
organic chemical vapor deposition process for manufacturing 
semiconductor materials. 
These items are classified under ECCN 3C004, valued at 
$704,328, and are controlled 
for national security reasons. AIRPORDUCTS AND CHEMICALS 
INC., 7201 Hamilton Boulevard, 
Allentown, PA 18195(619-481-6207) is the license applicant 
and the intermediate consignee 
is SANCHANG IMPORT AND EXPORT (SHANGHAI) CO. LTD, Room 451, 
NQ 551 Lao Shan Cun,Pudong, 
Shanghai, China (86-21-5888-5100). 
 
¶3. On August 3, 2006, ECO requested that the Department of 
Mechanical, Electrical 
and High-Technology Industries of the Ministry of Commerce 
(MOFCOM) arrange a pre-license 
visit to XIAMEN CHANGELIGHT CO. LTD in accordance with the 
Exchange of Letters on End-Use 
Visit Understanding. On August 22, 2006, MOFCOM scheduled 
this visit for August 25, 2006. 
 
¶4. On August 25, 2006, ECO, accompanied by MOFCOM official 
WEI Jie and ZHAO Fuping, 
Xiamen Municipal Trade Development Bureau, High Technology 
Department, conducted a 
site visit at the premises of XIAMEN CHANGELIGHT CO. LTD, No. 
124 Chuangye Building, 
Xiamen Pioneering Park for Overseas Chinese Scholars, Xiamn, 
Fujian Province, and 
met with DENG Dianming, President and General Manger, and YE 
Sunyi, Assistant General 
Manager. 
 
¶5. Mr. ZHAO and Mr. DENG disclosed that XIAMEN CHANGELIGHT is 
a spin-off from XIAMEN 
SAN AN ELECTRICAL COMPANY, which was previously the subject 
of a post-shipment 
verification visit. (COMMENT:  Additional research by ECO 
confirmed that on 
October 26, 2004, at the request of BIS (USDOC 03899 
(08/17/04), FCS-Beijing did 
conduct a post-shipment verification (PSV) end-use check 
relative to BIS export 
license D315956 at the premises of XIAMEN ANMEI 
OPTOELECTRONICS, which is a joint 
venture between XIAMEN SAN AN ELECTRONICS CO. LTD and a U.S. 
company, LANCASTER 
RESOLVE TECHNOLOGIES, LLC, which is affiliatedwith VEECO. 
Results of this earlier 
favourable PSV were reported via cable from Beijing on 
November 3, 2004.) 
Mr. DENG and Mr. YE both worked at XIAMEN SAN AN ELECTRICAL 
COMPANY during the 
previous PSV and described that end-use check in detail. 
 
¶6. Mr. DENG stated that he, Mr. YE, and three other private 
investors whom he identified 
as WANG Weiyong, WEN Menli and ZHENG Shun formed XIAMEN 
CHANGELIGHT. Mr. DENG showed 
ECO a copy of the business license, registration no. 
3502002560395, and MOFCOM offical 
WEI Ji provided ECO with a copy of this document.  According 
 
BEIJING 00019682  002 OF 002 
 
 
to Mr. DENG, XIAMEN 
CHANGELIGHT was started because his previous employer, XIAMEN 
SAN AN ELECTRICAL COMPANY, 
could not keep up with the demand for LED wafers.  The core 
business for XIAMEN 
CHANGELIGHT will be the production of two-inch red/yellow LED 
wafers. This compaQ 
has yet to commence operations and the building is still 
under construQon. Mr. DENG 
anticipated starting operations in October with the first 
wafer run targeted for 
November, 2006. 
 
¶7. XIAMEN CHANGELIGHT currently has ten employees and Mr. 
DENG anticipates hiring up to 
100 employees. In response to questioning by ECO, which was 
based on a review of 
statements made in company literature regarding "foreign 
workers", XIAMEN CHANGELIGHT 
does not currently have any non-Chiense employees.  XIAMEN 
CHANGELIGHT will use 
technical teams from foreign companies to install, calibrate 
and maintain equipment 
purchased from overseas. Mr. DENG further advised that he 
anticipates borrowing 
20 to 30 thousand RMB from the bank but that equipment must 
first be in place in 
order to secure the loan.  Mr. DENG stated that XIAMEN 
CHANGELIGHT has purchased a 
MOCVD tool from Germany, fault and gas detectors from 
Honeywell, and a hydrogen 
purifier from GenTech. Wafer blanks will be purchased from 
AST - "Tumei". 
 
¶8. Mr. DENG stated that XIAMEN CHANGELIGHT does not currently 
have customers or 
confirmed orders; as there are no domestic or international 
standards for this product, 
XIAMEN CHANGELIGHT must make sample LED wafers for 
prospective customers to examine 
before securing contracts. 
 
¶9. ECO toured the facilities of XIAMEN CHANGELIGHT and 
observed construction in progress. 
The first two floors of the building will be the production 
line with offices on the 
third and fourth floors. ECO observed a 500 square metre 
clean room in the process of 
being constructed and noted air exchange and changing 
facilities. XIAMEN CHANGELIGHT 
is located in a new industrial park being developed by a 
private company under the 
direction of the Xiamen city government. 
 
¶10. As part of this PLC, ECO requested, and MOFCOM and local 
Xiamen government officials 
agreed, to a drive-by visit of XIAMEN SAN AN ELECTRICAL 
COMPANY, which is the parent 
company of XIAMEN CHANGELIGHT and the end-user of 
U.S.-controlled items exported under 
BIS export license D314956 (see para. 5 above).  This company 
occupies a multi- 
building campus with several thousand employees and appears 
to be active. 
 
¶11. RECOMMENDATION - FAVOURABLE.  Based upon the information 
available during this 
Pre-License Check, ECO recommends XIAMEN CHANGELIGHT CO. LTD 
as likely to be a reliable 
recipient of U.S.-controlled items and technology as 
described in REFTEL, to be used as 
described above. 
 
RANDT