Lawsuit: Taiwanese chipmaker accused of bullying US workers, discriminating against non-Asians

More than a dozen current and former U.S. employees are suing Taiwanese chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) for allegedly favoring Taiwanese and Chinese workers and subjecting non-East Asian workers to a hostile work environment. The legal challenge comes at a critical time as the company’s $65 billion project to build facilities in Arizona receives billions in federal funding.

What they’re claiming: The class-action lawsuit, initially filed in August and recently refiled with 13 plaintiffs from diverse backgrounds — including the U.S., Mexico, Nigeria, Europe and South Korea — accuses TSMC of favoring Taiwanese and Chinese workers in hiring, promotion and performance evaluations. Meanwhile, American employees were allegedly bullied, called “lazy” or “stupid,” subjected to stricter safety standards and “expected to work long hours without pay.” The suit highlights job postings requiring Mandarin proficiency even when not necessary and alleges managers use “Chenglish” to exclude non-East Asian employees from key information. “What we allege [is that] there is a cultural preference for one type of person, and that cultural preference, we believe, is what’s dictating their hiring, promotion, and termination practices,” Daniel Kotchen, one of the plaintiffs’ attorneys, told Arizona’s Family. The suit also claims TSMC failed to meet diversity commitments mandated by the CHIPS and Science Act, noting that as of last year, about half of the 2,200 employees at TSMC Arizona were visa holders from Taiwan.
What TSMC is saying: TSMC has declined to comment directly on the pending litigation but released a statement affirming its commitment to diversity. “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, adding that it provides channels for concerns and that it strives to address them constructively.
Key consideration: TSMC’s $65 billion investment in Arizona received $6.6 billion in federal funding under the CHIPS and Science Act. The project involves the construction of three fabs, with the first set to begin mass production using the 4-nanometer process in early 2025. The company plans to use advanced 3-nanometer and 2-nanometer processes in subsequent fabs, with full operations expected by 2030. President Joe Biden recently celebrated the CHIPS funding as “the largest foreign direct investment in a greenfield project in U.S. history,” emphasizing its importance while workers and legal representatives insist on the need for greater oversight and accountability. Despite this transformative economic impact, critics argue TSMC must be held accountable for fair and lawful employment practices.

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