TSMC sued for favoring Taiwanese workers at Arizona factory


By

Li Jilin

Taiwanese semiconductor manufacturer TSMC has built factories not only in Taiwan but also in Kumamoto Prefecture, Japan , Germany , etc. However, a lawsuit has been filed against the company in Arizona, USA, alleging that the company is 'favoring Taiwanese employees and treating American employees poorly.'

2024 08 22 - Complaint - DRAFT_Howington reviewed - gov.uscourts.cand.435057.1.0.pdf
(PDF file) https://storage.courtlistener.com/recap/gov.uscourts.cand.435057/gov.uscourts.cand.435057.1.0.pdf

TSMC sued for race and citizenship discrimination at its Arizona facilities (updated) | Tom's Hardware
https://www.tomshardware.com/tech-industry/tsmc-sued-for-race-and-citizenship-discrimination-at-its-arizona-facilities

Taiwan economic minister says TSMC's core advanced tech like 2nm chips won't leave country | TechSpot
https://www.techspot.com/news/105552-taiwan-economic-minister-tsmc-core-tech-not-leave.html

Plaintiff Deborah Howington alleges that TSMC has created a workplace in its Arizona facility where non-Asian employees face more scrutiny from the human resources department than Asian employees, including Taiwanese employees.

Specifically, the lawsuit alleges that all meetings and business documents were written in Mandarin, forcing non-Mandarin-speaking employees to use translation services, and that managers required employees to use the language-learning app ' Duolingo ' to study Chinese.

Forbes also reported that TSMC gives better performance evaluations and job assignments to Taiwanese employees with 'high-paying' visas. In addition, Howington and others claim that TSMC's human resources team in Taiwan sends resumes of Taiwanese candidates who can immediately work in the U.S. to TSMC's U.S. division, which then immediately hires the Taiwanese candidates regardless of whether there are local job openings.




'As a recipient of CHIPS funding and choosing to compete in the United States, it is imperative that TSMC comply with federal discrimination laws and treat people of all races, national origins and citizens equally,' said plaintiffs' attorney Daniel Kotchen. 'We are confident in our arguments and our lawsuit and look forward to presenting our case to a jury.'

TSMC responded by saying, 'We strongly believe in the value of a diverse workforce and hire and promote regardless of gender, religion, race, nationality or political affiliation because we respect differences and believe equal employment opportunities enhance our competitiveness. We also provide a variety of channels for employees to raise their concerns and strive to address them constructively.'



Taiwan's Minister of Economic Affairs, Guo Chih-hui , said on November 7, 2024, 'TSMC currently cannot produce 2nm chips overseas because Taiwan has regulations to protect its domestic technology. Even if TSMC produces 2nm chips overseas in the future, its core technology will remain in Taiwan,' indicating that TSMC has no plans to transfer its 2nm chip production capacity overseas for the time being.

Guo also said at the Economic Committee meeting on November 7, 2024 that the Taiwanese government will continue to invest in research and development to maintain its global leadership in the semiconductor industry, and efforts are underway to attract international partners to establish design and materials centers in Taiwan.

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