The news comes on the heels of National announcing the most successful fiscal year in its history, but the company said the iPods are more than just a reward for its employees.
"We're looking for new and more effective ways to communicate with our employees -- and the iPods will help us do both," said Brian L. Halla, National Semi's chairman and CEO, in statement.
National Semi spokesman Jeff Weir said his company has very real productivity expectations. He notes that half of the employees work in chip fabrication and test facilities where they aren't near a PC.
"They aren't checking emails from management all the time," said Weir. "This is another method for us to communicate information to employees, whether it's corporate speeches from the CEO, flash podcasts or new product snippets. It will all be available on iTunes for them to view at their leisure."
Weir said National is putting together a training program to make sure all employees know how to use the iPods and access content on iTunes.
National's 1,600 local employees were at the annual company picnic Friday when Halla announced the iPod giveaway.
National bought the iPods directly from Apple, which has been offering special edition U2 units in its product line. National employees didn't get the hit band's edition, but iPods engraved with the company logo and slogan "The Sight and Sound of Information."