N358355

N358355 February 24, 2026 OT:RR:NC:N4:410 CATEGORY: Origin Patrick Caulfield Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 599 Lexington Avenue, Floor 36 New York, NY 10022 RE: The country of origin of packaged LED chips Dear Mr. Caulfield: In your letter dated January 29, 2026, on behalf of your client, the OSRAM GmbH (“OSRAM”), you requested a country of origin ruling on packaged LED chips for purposes of marking and applying current trade remedies. The packaged LED chips are imported and used in lighting products in the United States for various industries including automobiles. Regardless of the particular SKU, all products are processed in the same fashion. First, a wafer (which can be produced in various countries) undergoes “front-end” processing at OSRAM’s facility in Germany. These operations produce LED chips that are subsequently sent to another facility in China for “back-end” processing. You state that the back-end operations are relatively simple compared to the front-end procedures and serve, in essence, only to install the LED chip into a housing that, in turn, can connect to the product in which it will be installed (e.g., a car headlight). The front-end processing involves both “Active Structuring” and “Passive Structuring”. The “Active Structuring” entails the following operations: deposition, resist coating and exposure, developing, etching, and resist strip. These steps include a number of manufacturing and chemical reactions that significantly change the wafer. The “Passive Structuring”, which occurs after Active Structuring, includes the following steps: resist coating and exposure, resist developing, metal deposition, and resist strip. The intermediary products at the end of these stages are LED chips. The back-end processing packages the LED chips into the finished packaged LED products. The purpose of the LED packaging during the back-end process provides the interconnecting interface to the customer application, chip interconnect and electrical wiring, and more (e.g. laser marking, singulation, etc.). You elaborate the frontend (in Germany) and the backend (in China) operations as follows: FRONT-END PRODUCTION PROCESSES (IN GERMANY) A. Front-End Production: Active Structuring Active Structuring process takes place in Germany. Active Structuring is the first step in the front-end processing. Deposition Deposition is the first operation necessary to produce the LED chip and involves adding thin films of material onto a semiconductor wafer. These films can be conductive, insulating, or semiconducting, depending on the device requirements. Common deposition methods include those listed below; Osram will use a combination of these methods depending on the desired color of the finished LED chip (e.g., red light, clear light, etc.) · Chemical Vapor Deposition (CVD): Uses reactive gases at high temperatures to form solid layers. · Physical Vapor Deposition (PVD): Atoms are ejected from a target material and deposited onto the wafer. · Atomic Layer Deposition (ALD): Offers precise control for ultra-thin layers, ideal for advanced nodes. These layers form the foundation for subsequent patterning and etching steps, enabling the creation of transistors, capacitors, and other microstructures. Resist Coating and Exposure This next step involves applying a light-sensitive polymer (photoresist) onto the wafer using spin coating. This results in a semi-manufactured “resist” that is then baked; the baking is meant to stabilize the resist. A photomask is used to expose the resist to UV light, transferring a pattern onto the wafer. The exposed areas undergo chemical changes, becoming either more or less soluble depending on the resist type (positive or negative). Developing After exposure, the wafer is developed using a chemical solution that removes the soluble parts of the resist. This reveals the underlying material in the desired pattern. The development process is critical for achieving high-resolution lighting ability and a consistent lighting pattern in the finished chip. It is typically done using spray or puddle methods on a rotating chuck. Etching Etching selectively removes excess material from the wafer to create the desired microstructures. There are two main types of etching and OSRAM will use either one or both depending on the LED chip desired: · Wet Etching: Uses liquid chemicals to dissolve materials. · Dry Etching: Uses plasma or reactive ions for high-precision removal of the excess material. Etching is used to define transistor gates, contact holes, and interconnect paths. It must be carefully controlled to avoid damaging underlying layers. Resist Strip Once etching is complete, the wafer with remaining “photoresist” and reaction byproducts must be “cleaned” of all remnants of etching before the chip can undergo the Passive Structuring. Resist stripping ensures a clean surface for subsequent processing and prevents contamination. This is done via one of the following methods depending on the LED chip desired: · Wet Stripping: Uses solvents or acids. · Dry Stripping (Plasma Ashing): Uses oxygen plasma to oxidize and remove organic resist. B. Front-End Production: Passive Structuring After the Active Structuring, the chip undergoes Passive Structuring. Passive Structuring involves repeating many of the same operations as Activate Structuring except that a metalcoating is added to the processed wafer through a process known as metal deposition as opposed to the deposition in Active Structuring which adds layer of film. Thus, the combination of Active Structuring followed shortly thereafter by Passive Structuring, creates an LED chip that has been layered with both film and then metal. Resist Coating and Exposure In passive structuring, resist coating and exposure are used to define patterns for non-active components such as metal interconnects, contact pads, or passive elements. The process begins with spin-coating a photoresist onto the wafer, forming a uniform layer. A soft bake follows to remove solvents and improve adhesion. The wafer is then exposed to UV light through a photomask that contains the layout of the passive structures. The exposure alters the chemical properties of the resist, making it either more or less soluble depending on whether a positive or negative resist is used. The resolution requirements here are generally less stringent than in active structuring, but uniformity and alignment remain critical. This step ensures that only the intended areas are opened for subsequent metal deposition or dielectric layering. The exposure system must maintain high overlay accuracy to align with previously defined active layers. Any misalignment can lead to electrical shorts or open circuits. The quality of this step directly affects the reliability of the final interconnects and passive components. Resist Developing Following exposure, the wafer again undergoes development using a wet chemical process. The developer dissolves the exposed (or unexposed, depending on resist type) areas, revealing the pattern. This step defines the resist profile and is influenced by factors like exposure dose, resist chemistry, and developer concentration. Accurate development is essential for high-resolution pattern transfer and minimizing defects (Metal) Deposition Metal deposition in passive structuring typically involves adding conductive layers such as aluminum or copper. Techniques include the following; OSRAM may use one or multiple of these techniques depending on the LED chip being produced: · Physical Vapor Deposition (PVD): Atoms are ejected from a metal target and deposited on the wafer. · Chemical Vapor Deposition (CVD): Reactive gases form a metal layer on the wafer surface. · Electrochemical Deposition (ECD): Metal ions in a solution are attracted to the wafer via an electric field. These metal layers form interconnects, electrodes, or reflective surfaces in opto-semiconductor devices. Resist Strip After met

is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). Additionally, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such ot