[News] TSMC Sued by Employees for Alleged “Anti-American” Discrimination in Arizona

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According to Liberty Times, citing Forbes, a group of TSMC employees is suing TSMC, alleging “anti-American” discrimination, which they claim has led to the departure of American workers.

In 2020, TSMC announced a USD 65 billion plan to build three fabs in Arizona, promising to create thousands of jobs in the U.S. TSMC receives USD 6.6 billion in funding and USD 5 billion in loans through the federal CHIPS Act, a measure introduced during the Biden administration to boost U.S. semiconductor manufacturing, as the report noted.

TSMC’s expansion in the U.S. has stirred controversy due to its reliance on workers from Taiwan, as the report noted. Last year, over half of the 2,200 employees at TSMC’s Arizona facility were Taiwanese. Tensions between American and Taiwanese employees have been widely discussed, particularly concerning the differing employment standards for each group.

The report noted that TSMC’s current recruiting director, Deborah Howington, initially filed the lawsuit in August. As a member of TSMC’s HR leadership team, Howington claims to have observed a culture of unlawful favoritism toward Taiwanese employees. This month, 12 former TSMC employees joined the lawsuit, making similar allegations.

The lawsuit further claims that TSMC partnered with Banner Health to establish a health center exclusively for Taiwanese employees and that TSMC hired a Taiwanese doctor without a U.S. medical license, as noted by the report.

According to the report, the plaintiffs’ attorney, Daniel Kotchen, argued that TSMC, having received over USD 6 billion in U.S. federal funding, must comply with anti-discrimination laws and treat all employees equally.

The report pointed out that a key focus of the lawsuit is TSMC’s alleged preference for Mandarin-speaking employees, with claims that meetings and business materials are often exclusively in Mandarin, hindering English-speaking employees who must rely on translation services. This issue reportedly intensified during training in Taiwan, and an American employee was allegedly advised to learn Mandarin via Duolingo.

The lawsuit also alleges that Taiwanese employees with “costly” visas received preferential evaluations and assignments, as TSMC sought a “maximum return” on its investment. Howington further claims that TSMC actively recruited Taiwanese talent for U.S. roles, secretly engaging an “Asian headhunter” to do so, as mentioned by the report.

TSMC has yet to respond to the class-action complaint and declined to comment on the lawsuit. A spokesperson emphasized the company’s commitment to diversity, stating that TSMC does not consider gender, religion, race, nationality, or political affiliation in hiring and promotions. The spokesperson added that TSMC values equal employment opportunities and offers channels for employees to raise and resolve concerns constructively, according to the report.

In addition to the lawsuit filed by American employees against TSMC, the anticipated completion ceremony for TSMC’s Arizona fab has become a subject of considerable speculation.

According to another report from Liberty Times, the ceremony, originally rumored to be scheduled for December 6, may have been postponed. However, TSMC has not officially confirmed whether the ceremony will proceed or be rescheduled. The report suggests that TSMC’s uncertain stance reflects the challenges it faces amid geopolitical tensions.

Some speculate the ceremony could be held in the first quarter of next year, potentially after the new U.S. president, Trump, takes office, while there is also a rumor that TSMC sent out invitations for the ceremony in October, initially planning for December 6—the same date as the groundbreaking ceremony two years ago, as the report pointed out.

According to the report, TSMC has yet to confirm whether the ceremony will occur and has not commented on rumors of the event being postponed or on speculation about key figures attending.

Read more

• [News] ‘Taiwan+1’ Accelerates, Igniting U.S. Investment Surge in TSMC Supply Chain
• [News] Four Key Takeaways on TSMC’s Reported Halt of 7nm and Below Chip Supplies to China

(Photo credit: TSMC)