K A S H R U T . C O M_©

From the OU: Kirkland's chocolate chips, are labeled OUD, but in fact, its true status, at the present time, is DE (Dairy Equipment)
A DE product is Parve products made with heat on dairy equipment. This product may be eaten after meat, but not with meat.
Some kashrus agencies use a DE symbol, but the OU has chosen not to use a DE designation because it is felt it may be confusing to the kosher consumer. Also, to be a true DE product, the equipment must be properly cleaned of residue after dairy production, and that level of cleanliness is sometimes difficult to maintain and guarantee.
Please note that it is possible that the manufacturer will reformulate this product and add a true dairy ingredient.
The DE Status of a product should be verified every 3 months.

The OU response as to how to cook or bake with a DE product:
One can bake/cook with it in a fleishig dish, so long as there is no meat cooking with it.
It just can’t be cooked or eaten together with meat.
If one cooks with it in parve utensils, it stays pareve, but usually it is not done, because it can be confusing.

Additional response from the OU regarding DE:
One is not permitted to cook DE with actual meat.
A meat pan that is not cleaned very well should be considered like cooking with actual meat.
A meat pan that is perfectly cleaned, would technically be permitted, provided it perfectly cleaned afterwards before using for meat.
Therefore this is not recommended, and usually not done.
One is permitted to cook DE in pareve equipment, but most people will just cook DE in Dairy pots so that they remember that the food is not pareve. But if they need to cook in pareve pot, it is permitted.

From the OK: Trader Joe's Chocolate Chips are Pareve Chocolate Chips that are packed in a packing machine that also does dairy. Dairy chips go through the packing machine and some chips can remain in the machinery when the pareve chips are being packed afterwards. Even if one dairy chip falls into the package it is not considered botul beshishim. The company does not want supervision of the packing and therefore the OK certifies the Chocolate Chips as dairy.