PROPOSED TRAINING PROJECT DETAILS Training Proposal for Infineon Technologies America Corp: 17-0623 Page 1 of 5 TRAINING PROPOSAL FOR INFINEON TECHNOLOGIES AMERICAS CORP 17- 0623 Panel Meeting Date: 09/22/2017 Regional Office: North Hollywood Regional Office Analyst Name: Wadzinski, Elsa Type of Proposal: Single Employer Contract (SE) Funding Source: Out-of-State Competition (OSC) FUNDING OVERVIEW Provided here is a summary of the funding for the proposed Training Project. TOTAL ETP FUNDING: $568,248.00 Program & Admin Cost Support Cost Substantial Contribution ($ / %) Total In-Kind $632,400.00 N/A Temecula Location Only ($64,152/30%) $599,514.00 APPLICANT PROFILE Company Summary Infineon Technologies Americas Corp (Infineon) (www.infineon.com), is a global designer, manufacturer and supplier of a broad range of semiconductors used in various microelectronic applications including audio, automotive, aerospace, industrial, lighting, medical, power management, power supply and USB. Industry Sector(s) Manufacturing Priority Industry Yes No. of Employees (Applicant) State: 3,000 US: 3,500 World Wide: 36,300 Turnover Rate (Applicant) 4.00%. Repeat Contractor Yes High Unemployment Area No Unions No
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PROPOSED TRAINING PROJECT DETAILS
Training Proposal for Infineon Technologies America Corp: 17-0623 Page 1 of 5
TRAINING PROPOSAL FOR
INFINEON TECHNOLOGIES AMERICAS CORP
17- 0623
Panel Meeting Date: 09/22/2017
Regional Office: North Hollywood Regional Office
Analyst Name: Wadzinski, Elsa
Type of Proposal: Single Employer Contract (SE)
Funding Source: Out-of-State Competition (OSC)
FUNDING OVERVIEW
Provided here is a summary of the funding for the proposed Training Project.
TOTAL ETP FUNDING: $568,248.00
Program & Admin Cost Support Cost Substantial Contribution
($ / %) Total In-Kind
$632,400.00 N/A Temecula Location Only
($64,152/30%) $599,514.00
APPLICANT PROFILE
Company Summary Infineon Technologies Americas Corp (Infineon) (www.infineon.com), is a global
designer, manufacturer and supplier of a broad range of semiconductors used in various microelectronic applications including audio, automotive, aerospace, industrial, lighting, medical, power management, power supply and USB.
Industry Sector(s) Manufacturing
Priority Industry Yes
No. of Employees (Applicant) State: 3,000 US: 3,500 World Wide: 36,300
Training Proposal for Infineon Technologies America Corp: 17-0623 Page 2 of 5
TRAINING PROFILE
Training Objective
Infineon’s training needs derive from new customers and partners, requests for new silicon carbide product development and expansion of their product portfolio. Technological innovation involving new devices and features drive the need for training.
Training is summarized below. Additional details are provided in Attachment 1 - Group and Job Title Details of this Panel Proposal.
# Group Characteristics # of Trainees
Reimbursement Rate
Avg. Hours
Cost Per Trainee
Min – Max Hour
1 Retrainees 1,160 $18 30 $540 8-200
2 Retrainees, Job Creation 10 $20 30 $600 8-200
PROPOSED TRAINING PROJECT DETAILS
Training Proposal for Infineon Technologies America Corp: 17-0623 Page 3 of 5
Provided here are the details on the proposed Training Project.
1. Company Background
Infineon was founded in 1947. Infineon designs and manufactures analog, digital and mixed signal integrated circuit boards, semiconductor and system solutions and other advanced power management products. The products enable high performance computing and energy savings in business and consumer applications.
2. Current Training Project Details
Purpose of Training
Training in this proposal will also be provided to International Rectifier HiRel Products, Inc. (HiRel), an independent manufacturing plant and wholly owned subsidiary of Infineon, since HiRel’s training needs overlap with Infineon’s. Infineon recently purchased HiRel in 2015.
This proposal will be Infineon’s seventh, the fourth in the last five years. Infineon has had one previous Contract (ET16-0104) and HiRel has had five previous Contracts. Training in the Previous Contract, ET16-0104, concentrated on moving and integrating HiRel employees to Infineon's standardized business practices: marketing, sales, operations and manufacturing. Training helped the two companies merge efficiently.
This proposal will focus on production and engineering related topics that will allow production workers and support staff to increase production and quality standards. Production workers will learn new manufacturing techniques while marketing associates and support staff will expand their knowledge in computer and business skills. Other training will include continuous improvement, advanced operating procedures, failure analysis, reading technical specifications, and assembly procedures.
Training Infrastructure and Administrative Plan
Infineon’s Director of Learning and Development will manage the training plan rollout and administration for all locations. The Senior Learning and Development Program Manager will manage and administer the project at the Temecula site. Infineon will assign a training coordinator to collect all original documents and work with ETP. Also, National Training Company (NTC) was retained to provide administrative services.
Marketing Plan
(MEC Only)
N/A
Support Cost Description
(MEC Only)
N/A
Substantial Contribution Description
A 30% Substantial Contribution (SC) applies only to Group 1 trainees employed at the Temecula facility. The Temecula facility was assessed a 15% SC in the previous proposal.
3. Sample Curriculum
Each of the Trainee groups will be able to take courses under the various delivery methods.
PROPOSED TRAINING PROJECT DETAILS
Training Proposal for Infineon Technologies America Corp: 17-0623 Page 4 of 5
Justification Summary: PL trainees will receive hands-on training on proprietary production equipment. Training will include specialized manufacturing and production processes. The Contractor is requesting PL training of up to 60 hours for manufacturing and production occupations. The trainer to trainee ratio will mostly be 1 to 1, but the Contractor is requesting a trainer to trainee ratio of 1 to 3 to accommodate the few instances when training schedules need to be changed due to business demand.
4. Additional Company or Training Project Details
4.1 Program Waivers
N/A
4.2 Subcontractor Summary
The applicant has retained the services of the following Subcontractor(s).
Subcontractor Type Subcontractor Name City Service Cost
Development National Training Company, Inc. Irvine $15,000.00
Administrative National Training Company, Inc. Irvine A fee not to exceed 13% of the total Contract amount earned.
Training None to date
PROPOSED TRAINING PROJECT DETAILS
Training Proposal for Infineon Technologies America Corp: 17-0623 Page 5 of 5
4.3 Previous ETP Project Summary
The table below summarizes the active performance under the ETP contract.
Active Contract(s) Elements
Summary
Agreement Number ET16-0104
Purpose of Training Infineon purchased International Rectifier Corporation (IRC) in January 2015. Training is this Agreement concentrated on IRC employees moving and integrating to Infineon's approach to marketing, sales, operations and manufacturing, in addition to adopting new standardized business practices. Training helped the two companies merge efficiently.
Location(s) El Segundo, Hayward, Milpitas, Morgan Hill, San Jose, Temecula, Torrance
Term 07/01/15 – 06/30/17
Approved Amount $402,886
Projected Earnings Currently the ETP Contract Status Report shows $363,891 in invoices for earned and in process funds. The Company also has an outstanding invoices to be entered into the system. The Company expects to earn 100% of requested funds.
Performance Percentage 100%
Other Notes
This table summarizes Contractor's performance under prior contract(s) completed within the last five years.
Past Contract Activity
Agreement Number
Location(s) Term Approved Amount
Project Earnings Performance %
ET13-0279 El Segundo, Temecula, San Jose
02/04/13 – 02/03/15
$356,400 $282,870 79%
ET12-0231 El Segundo, Temecula, San Jose
12/19/11 – 12/18/13
$165,600 $165,600 100%
4.4 Supporting Panel Proposal Documentation
Attachments 1, 2 and 3 provide additional application details on the intended training population, the detailed curriculum, and associated program characteristics that are related to this proposed Training Project.
Attachment 1 – Group and Job Title Details
Training Proposal for Infineon Technologies Americas Corp.: 17-0623 Attachment 1: Page 1 of 4
The proposed Training Project includes training for the following Trainees, organized by training group.
Explain the need for productive laboratory (PL) training.
Classroom instruction is not an adequate means of training delivery because trainees must learn how to operate proprietary equipment that requires hands on experience. The equipment is too large to bring into a classroom. Trainees who are proficient on one type of equipment will be cross-trained on new equipment. New hires will be trained on this equipment. The occupations that will be trained using productive lab are production workers.
Attachment 2 – Training Delivery and Curriculum Listing
Training Proposal for Infineon Technologies Americas Corp.: 17-0623 Attachment 2: Page 4 of 4
Delivery Method/Level Productive Lab (PL)
Training Type/Level Planned Course Offerings
Describe the Equipment/Processes to be used in delivering PL training
Trainer will have at least two years of operating equipment before training others.
Attachment 3 - Training Project Characteristics Details
Training Proposal for Infineon Technologies Americas Corp: 17-0623 Attachment 3: Page 1 of 1
Provided in the table are details on the training characteristics.
Characteristic Program Summary
Retrainee - Job Creation Retrainee Program
The Panel incentivizes job creation. Training for newly-hired employees is reimbursed at a higher rate, and trainees are subject to a lower post-retention wage. The date of hire for trainees is within the three-month period before contract approval, or within the term of the contract. Trainees are hired into “net new jobs” as a condition of contract. Substantial Contribution and Turnover Rate penalty requirements do not apply.
Employer must demonstrate expanded or new facilities, new equipment or machinery, expanded business capacity or other measureable investment in hiring workers and expanding their California workforce. A trainee whose employment is “Temp-to-Permanent”, “seasonal”, or “part-time” may be considered newly-hired, but employment retention cannot begin until trainee is a permanent full-time employee on Contractor payroll.