The country of origin of packaged LED chips

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 metal deposition, the remaining resist must be removed. This is done using one of the following two processes: · Wet Stripping: Solvents or acids dissolve the resist. · Dry Stripping (Plasma Ashing): Oxygen plasma oxidizes and removes the resist. Effective resist stripping ensures clean surfaces and prevents contamination in subsequent steps. BACK-END PRODUCTION PROCESSES (IN CHINA) The finished LED chips are then sent from Germany to China for back-end finishing operations. These back-end operations create a package for the LED chips that can connect to the end-product consistent to the customer’s specifications. Pre-Molded Leadframe First, a raw metal strip, typically made of copper alloys, that serves as the mechanical and electrical foundation for the finished LED housing is structured by etching or stamping. Afterwards the housing is fabricated by a molding step. Surface treatments like silver or nickel-palladium-gold plating are often applied to improve wire bonding and corrosion resistance. These pre-molded leadframes arrive at the Chinese production site in various configurations, depending on the defined LED package design. LED Chip Bonding LED chip bonding refers to the placement and attachment of LED dies onto a substrate or leadframe with high positional precision. Depending on the thermal, electrical, and mechanical requirements, the bonding process employs conductive epoxy adhesives containing silver flakes, silicone-based materials, or solder alloys. A subsequent curing of glue ensures mechanical fixation and establishes the required thermal interface. In multi-chip configurations, several LED dies are bonded according to a predefined layout to achieve specified color mixing behavior, optical output, or beam shaping characteristics. LED Chip Wire Bonding LED chip wire bonding establishes the electrical interconnection between the die bond pads and the package leads or substrate using ultra fine bonding wires, typically composed of gold or silver gold alloys. The process utilizes a controlled combination of temperature, mechanical force, and ultrasonic energy to generate metallurgical bonds with high reliability. Post bond inspection verifies bond strength, loop geometry, wire placement accuracy, and identifies defects such as non-sticks, lifts, or cratering. Encapsulation Encapsulation involves applying epoxy or silicone systems to protect the semiconductor die and wire bonds against environmental influences and mechanical stress, while simultaneously enhancing optical light extraction efficiency. Depending on the package design, an external lens may be mounted, or a lens structure may be formed directly through the molding process. Following dispensing or molding, the encapsulation materials undergo a curing cycle to establish their final crosslinked network and resulting material properties such as hardness, refractive index, and thermal stability. Post encapsulation inspection evaluates resin height, material homogeneity, contamination, and other potential process deviations. Laser Marking Laser marking constitutes the terminal stage of the packaging flow and is used to apply identification, traceability, or customer specific information onto the package surface. Frequency tripled Nd:YAG laser systems are typically employed to ablate surface material and generate high contrast, permanent markings. Marking content may include lot identifiers, date codes, serial numbers, or manufacturer specific symbols. Automated vision systems subsequently verify mark quality, legibility, and alignment. This process step is essential for product traceability, quality assurance, and compliance with industry specific standards throughout the supply chain and operational lifetime of the device. Singulation During singulation, individual components are separated from the leadframe strip or substrate panel. Depending on the package and substrate design, separation is performed via stamping, punching, or dicing processes. For components with premolded housings, lead forming operations are typically executed to create J lead or other required lead geometries. Testing, Sorting, Taping Each LED undergoes comprehensive electrical and optical measurement to confirm compliance with the specified electro optical performance parameters. The resulting measurement data enable binning of devices according to brightness, chromaticity coordinates, forward voltage, or other defined attributes, as specified in the product datasheet. In the final packaging step, SMT compatible products are loaded into standardized blister tapes to support automated high speed SMT assembly. Depending on the component type, alternative packaging formats such as trays or tubes may be applied. When determining the country of origin for purposes of applying current trade remedies under Section 301 and additional duties, the substantial transformation analysis 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 other country the “country of origin” within the meaning of the marking laws and regulations. Based upon the facts presented, it is the opinion of this office that the frontend manufacturing process in the production of the LED chips in Germany is both meaningful and complex. These LED chips have a predetermined end use, which do not undergo a substantial transformation as a result of the back-end processing that takes place in China. The products identity and predetermined end use is retained. Therefore, since a substantial transformation does not occur as a result of the Chinese manufacturing/assembly process, the country of origin of the packaged LED chips will be Germany for purposes of marking and applying current trade remedies. 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 Michael Chen at michael.w.chen@cbp.dhs.gov. Sincerely, (for) James Forkan Designated Official Performing the Duties of the Division Director National Commodity Specialist Division