Applied Materials critical proposal approved; panel hears plans to use apprenticeships — not just internships — to build semiconductor workforce

2173681 · January 25, 2025

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Summary

The panel approved a critical Applied Materials proposal while staff and the company clarified plans for apprenticeships tied to the CHIPS/semiconductor investment and corrected a press-release wording that referenced internships.

The Employment Training Panel approved a critical proposal from Applied Materials totaling $849,800 and heard extended discussion about the company’s workforce pipeline plans, including registered apprenticeships and partnerships with state agencies.

Applied Materials representatives described a multibillion-dollar R&D investment in California and emphasized the company’s need for a trained technical workforce. In the meeting, Applied staff clarified that apprenticeship — not internship-only — approaches are a central component of their workforce-development strategy and that a previously publicized reference to internships had been misstated in a press release.

Why it matters: Applied’s investment and training plans are intended to support a large increase in semiconductor-related jobs in California. Panel members and outside counsel described apprenticeship strategies as a direct pipeline into skilled, long-term positions, aligning with state incentives tied to the CHIPS Act and other semiconductor workforce initiatives.

Panel discussion and clarification: Panel members asked how internships and apprenticeships would feed into full-time hiring. Applied’s HR and counsel explained that journaled apprenticeship programs (registered with the Department of Apprenticeship Standards and involving community-college partners) are expected to create direct pathways to long-term employment, separate from short-term paid internships.

Panel action: The Applied Materials critical proposal (tab 21) was approved by roll call vote. Staff flagged the project as a critical award developed with the economic development team and noted it will be tracked under ETP critical-project reporting requirements.

Ending: Applied thanked the panel and staff; economic development staff and counsel said they will continue to work with state partners on apprenticeship cohorts and other workforce pipelines.