Applied Materials Inc

Applied participates and engages in the political process through efforts such as participation in trade associations, lobbying, and political contributions. Applied's business is subject to policies and regulations at the international and federal, state, and local levels of government in the U.S., which can have a significant impact on our business. Engagement in the political, regulatory and policy making process is important to our success and in the best interest of our shareholders. [...] Our Corporate Governance and Nominating Committee of the Board of Directors, comprised entirely of independent directors, oversees our public policy activities, and receives an annual report detailing our political contributions, and policies relating to our political giving and activity. [...] Management of political contributions is the responsibility of the Vice President of Communications and Public Affairs, and the Managing Director, Government Affairs, in consultation with outside counsel to assess compliance with applicable laws, regulations, and Applied's policies and procedures. Applied's political spending is aligned to a set of focus areas and not the political preferences of any individual director, officer, or employee. [...] AMPAC's activities are overseen and its contributions are reviewed and approved by the AMPAC board of directors. The AMPAC board of directors has established the following criteria to support candidates on a bipartisan basis – position on Applied's priority issues; committee assignment; leadership position; representation of an area where Applied has a facility or significant presence; as well as a candidate's commitment to promote the democratic system of government and the free enterprise system. [...] Any request for a corporate political contribution at the state or local level requires the review and approval of the Vice President of Communications and Public Affairs, the Managing Director, Government Affairs and the State Contributions Committee in consultation with outside counsel. [...] Management of our advocacy activities is the responsibility of the Vice President of Communications and Public Affairs, and the Managing Director, Government Affairs. [...] All trade association memberships are regularly reviewed and approved initially and annually by the Vice President of Communications and Public Affairs and Managing Director, Government Affairs.

The ESG team works closely with Applied's Government Affairs team to ensure awareness of Applied's ESG-related priorities and objectives (including climate-related issues) and alignment in any engagement efforts. The Government Affairs team actively flags key updates, rulemaking and opportunities that may pertain to Applied's climate interests – for example the recent SEC proposed ruling on climate-related disclosures.

###### Public Policy

###### Applied Materials participates in efforts to inform policymakers about issues and challenges critical to our company, our customers and our customers' customers, typically via meetings, hearings and trade association advocacy efforts. Our general policy focus areas include technology regulation, international trade, research and development (R&D), human resources and labor, and sustainability. Efforts within these areas include advocating for immigration reform that embraces the contributions of immigrants to the U.S. economy; advocating for fairness, diversity and inclusion, including LGBTQ+ rights; and working on policies, partnerships and R&D incentives to develop and advance next-generation technologies.

In 2022, our Government Affairs function engaged both Congress and the Biden administration on core provisions of the U.S. CHIPS and Science Act:

- U.S. semiconductor funding: We successfully advocated for the CHIPS Act that provided $52.7 billion for grants to revitalize the U.S. position in semiconductor research, development and manufacturing, including workforce development.

- Federal tax credit: We were among a small number of companies leading efforts to include and expand the investment tax credit that had been removed when CHIPS programs were authorized as part of the 2021 National Defense Authorization Act. The tax credit applies to qualifying investments in facilities for manufacturing semiconductors or semiconductor manufacturing equipment.

Since passage of the CHIPS Act, Applied has been engaging with the administration and Congress to ensure its rollout is implemented fairly and equitably across the supply chain. In September 2022, Applied's Chief Technology Officer, Om Nalamasu, was named to the U.S. Commerce Department's new Industrial Advisory Committee, which advises CHIPS for America on issues related to domestic semiconductor R&D.

Under provisions of the CHIPS Act, recipients of manufacturing grants must demonstrate a commitment to increasing the participation of economically disadvantaged individuals in the semiconductor workforce. Applied is currently working with global trade association SEMI to create an apprentice program where Silicon Valley semiconductor manufacturers can train students from underrepresented communities. This program will extend our work with the Foundation's Generation Girl initiative, providing a multi-rung pathway from early STEM education to college to employment within the industry.

Applied Materials also joined a broad business and stakeholder coalition in 2022 to push the successful passage of the U.S. Respect for Marriage Act, which codifies into U.S. law protections for same-sex and interracial couples. Our Government Affairs team worked with our trade associations to garner votes for the bill, which ultimately passed both houses of Congress with strong bipartisan support and was signed into law by President Biden on December 13. In advance of Senate passage, Applied Materials was one of the first corporate signatories to a Human Rights Campaign open letter calling on Congress to move the legislation, along with more than 170 other companies.

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###### Business and Trade Associations

Applied Materials maintains memberships in various business and trade associations that advance issues aligned with our corporate strategy and the needs of our company, industry, employees and communities. Our membership in a group does not imply that we endorse the entirety of that group's policy positions.

In 2022, Applied paid approximately $564,000 in trade association membership dues, 21% of which were specified by the associations as non-deductible lobbying expenditures. This total does not include conference or event sponsorships, programming activities or similar costs. Applied Materials reports on federal lobbying through the Lobbying Disclosure Act Database and files periodic reports with federal and state agencies, as appropriate.

Our U.S. Trade, Business and Civic Associations membership [list can be found here.](https://www.appliedmaterials.com/content/dam/site/company/csr/doc/2022_us_trade_associations.pdf.coredownload.inline.pdf)

###### Political Contributions

The Applied Materials, Inc. Political Action Committee (AMPAC) contributes to federal candidates, political action committees and party committees supporting issues of strategic importance to Applied, consistent with all legal requirements. Our State Contributions Committee oversees corporate political spending to advance those strategic issues at the state and local levels.

While Applied pays the administrative expenses for AMPAC, the committee is funded entirely through voluntary contributions from eligible employees, and does not make any contributions using Applied Materials corporate funds. AMPAC's activities are overseen and its contributions reviewed and approved by the AMPAC Board of Directors. Contributions are based solely on corporate objectives, without regard for the private political preferences of either the employees who contribute to AMPAC or individual committee members. During 2022, political contributions made by AMPAC totaled $69,500.

**Political Contributions**

The Applied Materials, Inc. Political Action Committee (AMPAC) was established in 2004 and helps the company participate in the political process. In full compliance with U.S. laws and regulations, campaign contributions are disbursed to candidates for state or federal office and to political action or political party committees. While the company pays its administrative expenses, AMPAC is funded entirely through voluntary contributions from eligible employees. Its activities are overseen by the AMPAC Board of Directors. Prior to issuance, AMPAC contributions are reviewed by outside legal counsel to verify that they are consistent with AMPAC's contribution policies criteria.

Neither the company nor AMPAC makes contributions to so-called Super-PACs, and political contributions are limited to within the U.S. AMPAC files its contributions reports monthly and quarterly with the Federal Election Commission, and these are available through their online database.

**State Contributions Committee: This committee, consisting of the same individuals who serve on the** AMPAC Board, oversees corporate political spending at the state and local levels. When warranted, we use corporate funds to make financial and in-kind political contributions within the U.S. as permitted by applicable laws, such as contributions to candidates for statewide offices and state legislatures, as well as to local or regional ballot measures. All contributions are disclosed publicly on our website biannually.

#### Political Contributions

The Applied Materials, Inc, Political Action Committee (AMPAC) was established in 2004 and helps the company participate in the political process. In full compliance with U.S. laws and regulations, campaign contributions are disbursed to candidates for state or federal office and to political action or political party committees. While the company pays its administrative expenses, AMPAC is funded entirely through voluntary contributions from eligible employees. Its activities are overseen by the AMPAC Board of Directors. AMPAC contributions are reviewed and approved by the AMPAC Board of Directors prior to issuance. In addition, they are reviewed by outside council to verify that they are consistent with AMPAC's contribution policies and criteria.

**State Contributions Committee: This committee, consisting of the same individuals who serve**
on the AMPAC Board, oversees corporate political spending at the state and local levels. When
warranted, we use corporate funds to make financial and in-kind political contributions within
the U.S. as permitted by applicable laws, such as contributions to candidates for statewide
offices and state legislatures, as well as to local or regional ballot measures. All contributions
are disclosed publicly on our website biannually.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]The ESG team works closely with Applied's Government Affairs team to ensure awareness of Applied's ESG-related priorities and objectives (including climate-related issues) and alignment in any engagement efforts. The Government Affairs team actively flags key updates, rulemaking and opportunities that may pertain to Applied's climate interests – for example the recent SEC proposed ruling on climate-related disclosures.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes