The country of origin of transistors

N344105 December 12, 2024 OT:RR:NC:N2:209 CATEGORY: Origin Maher Shomali Thomsen and Burke, LLP 2 Hamill Road, Suite 415Baltimore, MD 21210 RE:  The country of origin of transistors Dear Mr. Shomali: In your letter dated November 18, 2024, you requested a country of origin ruling on behalf of your client, ON Semiconductor Corporation (onsemi). The items concerned are silicon metal-oxide semiconductor transistors. The transistors are 4.45 × 6.60 nm in dimension and 100 micrometers thick. They are encapsulated in plastic packaging that is designed for easy handling and assembly into the final application. The production process of the transistors is comprised of three stages, which includes substrate construction, front-end operations, and back-end operations. Substrate Construction: The substrate construction process involves procuring high quality silica sand and producing silicon substrates, also known as empty wafers. Various materials go into the empty wafers and are sourced from several foreign and domestic suppliers. The materials used to produce the empty wafers are manufactured in the Czech Republic, Finland, Malaysia, Singapore, Taiwan, and the United States. The substrate manufacturer, located in South Korea, uses these materials to produce the empty wafers which then undergo front-end operations. Front-end operations: The empty wafers are shipped to onsemi South Korea, onsemi’s South Korean manufacturing facility, where the front-end operations occur. Front-end operations include three main stages of processing, including epitaxial growth, fabrication, and EWS (electrical testing), with multiple sub-processes per step. Epitaxial growth includes processing the empty wafers through automated silicon epitaxial film growth equipment. Fabrication involves various steps in the manufacturing process including: Oxide Deposition Photolithography Etching Ion Implantation Diffusion Metal Deposition Once the fabrication process is complete, the wafers contain fully functional silicon metal-oxide semiconductors or dice. Back-end operations: The back-end operations occur at onsemi China, onsemi’s Chinese manufacturing facility. At this stage, onsemi China singularizes the transistors by dicing and encapsulating them into their plastic packaging. The only purpose of the packaging is to make the finished product easier to handle. The packaging process begins when onsemi China singulates each transistor using general purpose wafer sawing equipment. During this process, the transistors that were deemed sub-optimal during EWS testing are discarded. After dicing, onsemi China attaches the transistor within the package, utilizing narrow wires and pins. The pins are used to connect the transistors when used in their final product. onsemi China encapsulates the transistor, base, and a portion of external pins using a generic epoxy molding compound. Finally, onsemi China tests the finished product to verify that the functionality of the transistors was not impacted by the packaging process. A complete manufacturing process description and explanation has been provided. When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) 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). Based upon the facts presented, it is the opinion of this office that the front-end operations that take place within South Korea is both meaningful and complex, resulting in the creation of wafers which incorporate numerous finished transistors. The wafers manufactured in South Korea do not undergo a substantial transformation as a result of the manufacturing process that takes place in China. They retain their identity as transistors with a predetermined end use. Therefore, since a substantial transformation does not occur as a result of the Chinese manufacturing process, the country of origin for the subject item will be South Korea. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Steven Pollichino at steven.pollichino@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division