
TSMC faces discrimination class action lawsuit in US
A lawsuit against TSMC alleging discrimination and safety concerns was refilled by 17 former and current US employees in the Arizona plant. The plaintiffs alleged that the company discriminates against local US hires and favors Taiwanese and Chinese employees, and that local US employees were subject to racist remarks by those foreign workers. They also claimed that the company does not have sufficient safety measures on their facilities. In response, TSMC said they will not comment on litigation outside of court filings, but that with a global team of more than 3,000 employees at the TSMC Arizona, the company will continue to build a safe, welcoming and inclusive environment.
TSMC’s fab in the US state of Arizona employs top talent from around the world. However, last year in November, 13 former and current employees accused the company of “anti-American” discrimination. In July, a discrimination lawsuit against TSMC was refiled, this time by 17 plaintiffs. They submitted more than 160 pages of allegations to the court.
Jeffrey Chiu
Ansforce CEO
Semiconductor fabs have very strict standards in terms of discipline. The high yield rate is a result of great discipline. Western companies are more liberal. It will take them some time to get used to the company culture at TSMC’s US plant.
According to a report by a local TV news outlet, 12News, employees at the Arizona plant alleged that TSMC favored Taiwanese and Chinese hires, and that around half of the employees were on foreign work visas. Additionally, they also said US employees were marginalized.
A supplier for TSMC revealed that when they visit the Arizona plant, they’d speak Chinese directly to the Taiwanese employees out of habit. They said, that since local US employees don’t understand Chinese, they felt sidelined. Following such incidents, managers at TSMC Arizona had since asked engineers to use English as the main language at work.
Jeffrey Chiu
Ansforce CEO
The US employees may think that if their rights are not being protected, then the company is at fault and so they can make their feelings known to the company to an extent. For a company with great stature and management like TSMC, it shouldn’t be a problem for them to explain things in detail to US employees in English.
Plaintiffs also alleged to insufficient security measures in the company, such as a lack of personal protective gear and that they were required to call the company’s internal service instead of 911 in case of an emergency.
In a statement to 12News, TSMC said the company will not comment on litigation outside of court filings. The company added that it’s proud of the global team of more than 3,000 people that has come together to make their new facility in Arizona a success, and that they look forward to growing the site into a major center of American semiconductor manufacturing excellence. They ended by saying that TSMC is committed to providing a safe, welcoming and inclusive environment for employees, contractors, and everyone who works at their facilities around the world.
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2025-07-07