In brief: Semiconductor giant TSMC is being sued by over a dozen current and former employees over allegations that the company discriminates against American workers while favoring those from Taiwan. The world's largest chipmaker is accused of bullying US workers, restricting their advancement, forcing them out of the company, and being biased toward hiring Taiwanese and Chinese nationals.
Deborah Howington, a talent acquisition director, filed the class-action suit in August. She claims that the HR department created a workplace at TSMC where non-Asian employees and non-Taiwanese citizens are subjected to a stricter level of scrutiny than similarly situated Asian employees, including Taiwanese citizens.
In April, it was reported that TSMC will receive a $6.6 billion grant and a $5 billion loan to build a series of fabs at its plant in Arizona, money that will come from the US CHIPS and Science Act.
"Having accepted $6 billion in US federal funding and elected to compete within the US, it's imperative that TSMC comply with federal discrimination laws and treat all races, national origins, and citizens equally," the plaintiff's attorney, Daniel Kotchen of Kotchen & Low, told Forbes. "We're confident in our case and look forward to presenting the case to a jury."
The lawsuit claims TSMC willfully disregarded diversity commitments made in the CHIPS Act. It notes that as of last year, approximately half of TSMC Arizona's 2,200-strong workforce is made up of visa holders from Taiwan.
"If you are receiving federal funding to create jobs in the US, it is your responsibility to live up to the rules and laws under the US," Kotchen added.
The suit also claims that some advertised positions ask for proficiency in Mandarin, even when being able to speak the language isn't a requirement for the position. It's also alleged that the higher-ranking Taiwanese workers regularly speak "Chenglish" so non-East Asian employees don't understand them, thereby preventing US staff from advancing at TSMC.
Another complaint is that TSMC's HR team in Taiwan sends the US branch of the company resumes of vetted candidates that can work in the US. The US team then hires "these Asian/Taiwanese candidates without question, even if no open roles have been posted in the US."
Furthermore, it's claimed TSMC is hiring Taiwanese employees on visas as a way to reduce the number of union positions for US workers.
Accoring to a process integration engineer at its Arizona plant, TSMC has recently begun to bully some employees into resigning due to poor performance without proper training, and Taiwanese locals often replace those who quit.
A spokesperson for TSMC said the company won't comment on pending litigation.
"TSMC believes strongly in the value of a diverse workforce and we hire and promote without regard to gender, religion, race, nationality, or political affiliation because we respect differences, and believe that equal employment opportunities strengthen our competitiveness," the company said in a statement.
This isn't the first time we've heard about problems between TSMC and its American workers. It was reported in June that US staff were complaining about twelve-hour days, common weekend shifts, and a "brutal" work-life balance. There were also complaints about poor training, stress, heavy workloads, and a militaristic atmosphere.
TSMC chairman Mark Liu responded to June's report by saying that the company does not ask US employees to conform to the same work culture standards as those observed in Taiwan, suggesting that American employees have it easier than those in the Asian nation.
TSMC hit with lawsuit over alleged discrimination against American workers
