CNBC AI News – July 6. What began as a legal challenge last year has now seen a significant escalation, with the number of plaintiffs suing TSMC over its Arizona fabrication plant climbing to 17. These U.S.-based employees are leveling serious accusations against the semiconductor giant, alleging a pattern of discriminatory and unsafe labor practices. Their claims encompass preferential hiring for Mandarin or Chinese speakers, inherent bias against non-Taiwanese staff, and a workplace environment marred by insecurity.
The lawsuit, initially filed by 12 plaintiffs in November 2024, asserts that TSMC has shown a clear preference for hiring individuals from Taiwan or mainland China for its Arizona facility. According to the complaint, invitation letters for TSMC’s recruitment drives were issued in Chinese, reportedly on the directive of TSMC’s headquarters in Taiwan. The goal, plaintiffs allege, was to selectively attract students of TSMC’s preferred ethnicities and nationalities. Furthermore, crucial internal meetings were allegedly conducted in Chinese or Mandarin to inadvertently exclude non-East Asian employees.
The plaintiffs also paint a picture of a “hostile work environment” for non-East Asian and non-Taiwanese/Chinese employees. U.S. workers, in particular, claim to have been subjected to frequent verbal abuse, with instances of being called “stupid” or “lazy.”
These accusations are underscored by a statement from James Perry, a former Chief Human Resources Business Partner and one of the claimants. Perry recounted a particularly jarring incident where a Taiwanese line manager allegedly stated during a meeting, “I’m so embarrassed, Americans are lazy, they don’t work hard enough, they don’t know enough, they don’t know commitment.” Perry further noted that at TSMC, employees working less than 12-hour days were often viewed as underperforming.
The suit highlights the experiences of Antonio Fisher, a U.S. Air Force veteran. During his training in Taiwan, Fisher requested taxi services to commute due to physical limitations stemming from his military service, making public transport difficult. TSMC reportedly denied this request. Subsequently, while riding a motorcycle, Fisher was involved in a collision with a car. After being hospitalized, he found no one to assist with translation services.
Fisher, who worked as a process technician at TSMC, also recalled that his training in Taiwan was primarily conducted in Mandarin. Official company emails were frequently in Chinese, and the majority of meetings he attended in the U.S. were also held in Mandarin.
The lawsuit dramatically details Fisher’s experience: “Mr. Fisher was belittled as if he were inferior or stupid compared to Taiwanese people, despite being more educated and experienced than many Taiwanese workers.” The suit further adds, “He was repeatedly slapped on the buttocks by older Taiwanese male engineers (unwelcome physical contact), and TSMC factory floor has a prevalence of inappropriate sexual jokes among Taiwanese male employees.”
Fisher also shared a disturbing incident from 2024 where he discovered a rubber chicken hanging from the ceiling above the desk of a Black colleague, an engineer. He described this act as “extremely hostile and discriminatory” and stated that, to his knowledge, no disciplinary action was taken against the individual responsible.
In response to these allegations, TSMC issued a statement: “Our policy is not to comment on litigation outside of court filings. We are proud of our global team of over 3,000 employees who are working together to make our new Arizona fab a success, and we look forward to growing the site into a key hub for U.S. semiconductor manufacturing excellence. TSMC is committed to providing a safe, welcoming, and inclusive environment for our employees, contractors, and everyone who works in our factories around the world.”
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