Case 5:20-cv-05676-EJD Document 23-9 Filed 09/25/20 Page 1 of 6
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`Exhibit 7
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`Case 5:20-cv-05676-EJD Document 23-9 Filed 09/25/20 Page 2 of 6
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`Applied Materials, Inc.
`Project Summary
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`Company Overview
`Applied Materials, Inc. (“Applied Materials”), headquartered in Santa Clara, California,
`manufactures, and distributes engineering solutions and equipment used to produce
`semiconductor chips, solar products, and advanced display used on computers, televisions, and
`smartphones. Applied Materials was founded in 1967 as a maker of chemical vapor disposition
`systems for fabricating semiconductors and has since grown its operations globally. Applied
`Materials has locations worldwide. It has two Austin, Texas facilities. The qualified business site
`where all the manufacturing is done is located at 9700 East Highway 290, Austin, Texas. There
`is an additional participating location in northwest Austin that is located at 10000 Spectrum
`Drive, Austin, Texas 78717. This location is a support facility for the manufacturing operations.
`It houses the IT and R&D divisions as well as a Data Center. Applied Materials employs 1,863
`employees at is Austin facilities and another 122 employees statewide.
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`Project Description
`Over the next five (5) years, Applied Materials anticipates investing approximately $27 million
`in its facility and IT infrastructure at the qualified business site. For the Facility portion of the
`investment, Applied Materials will upgrade its manufacturing capabilities and efficiencies
`through several onsite product output improvements. The investment will provide for more
`throughput in the factory as Applied Materials expects to increase production. The facility
`improvements will also include the construction of its onsite B30 Fit up Wellness and Health
`Clinic that will staff various doctors, chiropractors, and nurses to perform minor medical tests
`and procedures and allow for a much quicker access to health care for its employees. The project
`will also include an upgrade gym that will offer new workout rooms with yoga and other fitness
`instructed classes to help keep employees healthy and active. Applied Materials is putting a
`strong focus globally on the health of its employees. For the IT infrastructure, Applied Material
`swill invest in new laptops for is employees as well as pursue an expansion of its large data
`mining programs used in various analytics projects. The IT investment also includes a major
`upgrade of Applied Materials Enterprise Resource System software for manufacturing operations
`in Austin.
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`Enterprise Zone Definition
`Any block group within the State of Texas that has a poverty rate of 20% or more, as determined
`by the U. S. Census Bureau during each decennial census is a state enterprise zone.
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`Requirements for Hiring Disadvantaged Workers
`Projects may be physically located in or outside of the Enterprise Zone. If located within a zone,
`the company commits that at least 25% of their new employees will meet economically
`disadvantaged, enterprise zone residence or veteran requirements. If located outside of the zone,
`the company commits that at least 35% of their new employees will meet economically
`disadvantaged, enterprise zone residence or veteran requirements. Since the site location is not
`within a zone, the company would be required to commit that at least 35% of their new
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`Case 5:20-cv-05676-EJD Document 23-9 Filed 09/25/20 Page 3 of 6
`Case 5:20-cv-05676-EJD Document 23-9 Filed 09/25/20 Page 3 of 6
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`Applied Materials, Inc.
`Project Summary
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`employees will meet economically disadvantaged, enterprise zone residence or veteran
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`requirements. However, no new hires are part of this project.
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`Project Parameters
`0 Facility Location
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`0 9700 East Highway 290
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`0 Austin, Texas 78724
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`Ca ital Investment Total New: A rox. $27 mil
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`0 Facilities & Equipment Cost -$l4,519,000
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`0 GIS (ERP, Servers and PC5) -$l4,526,459
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`Timeline
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`0
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`September 4, 2018 - September 5, 2023
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`Job Categories/Employee Wages (When project has reached full emplomentl
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`0 Total Number of Full-Time Jobs at the site.
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`0 Total Number of Full-Time Jobs to be Retained for Program Benefit.
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`1,863
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`m
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`N/A
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`Job Category
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`Manager
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`Entry Level
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`Total
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`Number of
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`Number of
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`Jobs
`(employed by
`company)
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`Jobs
`(vendor or
`contract)
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`Average
`Annual Wages
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`Percent to
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`be Locally
`Hired
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`727,516
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`$191,228
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`N/A
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`$84,824
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`Note:
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`1. The above chart provides wages per W—2 figures with bonuses included in the aggregate
`used for the average calculation.
`2. Employee benefits received are as follows: Heath Insurance, Dental Insurance,
`Retirement Plan, 401(k), Paid Leave, Counseling, Life Insurance, Prescription Drug
`Plan, Vision, Flexible Spending Accounts, Tuition Reimbursement, Disability and
`Wellness/Behavior Health Benefits.
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`Maximum Estimated State Sales & Use Tax Refund/ Computation
`° $1,250,000
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`Case 5:20-cv-05676-EJD Document 23-9 Filed 09/25/20 Page 4 of 6
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`Applied Materials, Inc.
`Project Summary
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`• The State of Texas computes its Maximum Potential Refund based upon a company’s Capital
`Investment, Number of Jobs Created and/or Retained up to 500, and the Maximum Refund per
`Job Allocation ($2,500 per job for a Single Enterprise Project Designation).
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`Sales and Use Tax (State and Local)
`The Texas state sales and use tax rate is 6.25%, but the local taxing jurisdictions (cities, counties
`and special purpose districts, and transit authorities) may also impose sales and use tax up to 2%
`for a total maximum combined rate of 8.25%. For purposes of this program, it is the 6.25%
`portion of the tax that is used to provide a refund to corporations that apply for the Enterprise
`Zone program. The 2.0 % local tax is not affected, therefore no fiscal impact on the city.
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`Tax Structure
`Overall Tax =
`State Portion =
`Local Portion =
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`8.25%
`6.25%
`2.0 %*
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`Prior Council Action
`• Chapter 380 Agreement
`The City of Austin has never entered into a Chapter 380 Agreement with Applied Materials, Inc.
`• Enterprise Zone Application
`The City of Austin has never nominated Applied Materials, Inc. to the State of Texas as a Texas
`Enterprise Zone project.
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`Enterprise Zone Designation Period
`• 5 Years
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`The Public Good (if approved)
`1. The City of Austin would join our corporate partners in battling poverty, and in this case,
`this would assist the disadvantaged in or near a zone suffering from 4.02% poverty
`according to the state’s data of the last decennial census.
`2. The City of Austin would send a signal that we appreciate all corporate partners who take
`advantage of this program to help our citizens who meet economically disadvantaged,
`enterprise zone residence or veteran requirements.
`3. The City of Austin would support a program that requires no fiscal impact to the city.
`4. The City of Austin would support major capital investment at the qualified business site
`which is within our city limits.
`5. The City of Austin would maximize our local effort to return state sales and use tax to
`our city, rather than allow those dollars to be sent to other cities in support of their
`corporations and/or local economies.
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`Case 5:20-cv-05676-EJD Document 23-9 Filed 09/25/20 Page 5 of 6
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`Applied Materials, Inc.
`Project Summary
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`Site Map
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`Case 5:20-cv-05676-EJD Document 23-9 Filed 09/25/20 Page 6 of 6
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`Applied Materials, Inc.
`Project Summary
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`Transit Map
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