Current and former TSMC employees, including a director, are suing over discrimination issues. The American facility is hiring Taiwanese citizens while rejecting Americans.
The lawsuit was filed by Deborah Haughton, the talent acquisition director, back in August. She claims to have witnessed the HR department create a workplace where "non-Asian workers and non-Taiwanese citizens are subjected to stricter scrutiny." Since then, about a dozen former TSMC employees have joined the lawsuit.
TSMC is seeking $11.6 billion from the U.S. under the CHIPS Act, requesting $6.6 billion in cash and $5 billion in loans. TSMC plans to use these funds to build a manufacturing facility in Arizona.
"By accepting $6 billion in federal funding from the U.S. and choosing to compete in the U.S., TSMC must comply with federal anti-discrimination laws and treat all races, nationalities, and citizens equally. We are confident in our case and look forward to presenting it to a jury," stated the plaintiff's attorney, Daniel Kotchen.
The complaint further claims that TSMC's HR department in Taiwan sends resumes of candidates who have already been vetted and can work in the U.S. to the American division, after which the U.S. team “simply hires these Asian/Taiwanese candidates without question even if there were no job postings in the U.S.”
It is alleged that the requirement for proficiency in Mandarin or other Chinese languages is imposed even when unnecessary for specific roles. Mandarin is used to create professional barriers for employees and to hinder their career advancement.
TSMC has declined to comment on the lawsuit but stated:
“TSMC firmly believes in the value of a diverse workforce, and we hire and promote individuals regardless of gender, religion, race, nationality, or political affiliation, as we respect differences and believe that equal employment opportunities enhance our competitiveness. We also provide employees with various channels to express concerns and strive to address them constructively.”
Earlier reports indicated that TSMC is facing challenges in the United States due to concerns over labor practices and adapting to the U.S. work culture. In October, TSMC's president in the U.S., Rick Cassidy, stated that the Phoenix plant had achieved 4% better performance during initial testing compared to similar facilities in Taiwan.
Sources: Forbes, Tom's Hardware
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