TSMC Employees In Arizona Have Sued The Semiconductor Giant Over Unlawful Favoritism Being Shown To Taiwanese Workers At The Facility

In 2020, a $65 billion investment was planned by TSMC for the construction of three chip-production facilities that would be set up in Phoenix, Arizona. An ambitious move that would not just bring wafer manufacturing to American soil but also employ thousands of workers locally. Unfortunately, the largest semiconductor firm is in hot waters for seemingly favoring its Taiwanese workers, which has led to a lawsuit against the company over unlawful favoritism.

More than half of TSMC personnel stationed in the Arizona facility are from Taiwan, creating tensions in the workplace and compromising morale

As reported by Forbes, the lawsuit was initially filed in August by Deborah Howington, a current talent acquisition executive at TSMC, in California’s Northern District Court. Howington, being a member of TSMC’s HR leadership, would likely provide an impartial overview of what was happening at the Arizona facility, claiming that a culture of unlawful discriminatory practices that involved favoring Taiwanese employees was taking place. Eventually, twelve more employees joined the lawsuit, claiming similar allegations.

TSMC founder Morris Chang believes that this controversy exists because there is a lack of manufacturing talent in the U.S. Then again, there are around 2,200 workers currently stationed at the Arizona plant, with more than half hailing from Taiwan. Howington stated that TSMC secretly made arrangements with an ‘Asian headhunter’ who would provide the firm with Taiwanese candidates for U.S. jobs. It is possible that these Taiwanese workers would be offered better compensation on foreign soil compared to what they would receive on their home turf, which would disgruntle the American workers even more.

The plaintiff group’s attorney, Daniel Kotchen, a partner at the law firm Kotchen & Low, informed Forbes that TSMC should comply with federal discrimination laws and treat all individuals equally. Kotchen & Low recently won a class action lawsuit against Cognizant over favoring Indian workers on H-1B visas over local hires.

“Having accepted $6 billion in U.S. federal funding and elected to compete within the U.S., it’s imperative that TSMC comply with federal discrimination laws and treat all races, national origins, and citizens equally. We’re confident in our case and look forward to presenting the case to a jury.”

TSMC has not yet submitted a rebuttal to the class action complaint and has made no comment on the ongoing litigation. However, a company spokesperson has stated below that the semiconductor giant strongly believes in a diverse workforce while mentioning that employees have several avenues for raising their concerns.

“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. We also provide various channels for employees to raise concerns, and strive to address concerns constructively.”

The lawsuit also discusses TSMC’s alleged preference for employees who can speak and write Mandarin Chinese. The plaintiffs stated that meetings were often communicated in Mandarin only, which made it difficult for English-speaking employees to communicate with other individuals and do their jobs. This problem was highlighted when U.S. employees traveled to Taiwan for training purposes, with one of the workers stating that a manager encouraged her to study Mandarin on the Duolingo app.

It was also likely that a different language was spoken to prevent sensitive information from reaching American ears. Additionally, Taiwanese employees who are issued U.S. visas reap better performance reviews and job assignments. One plaintiff also alleges that TSMC partnered with Banner Health to offer Taiwanese employees various benefits. Upon closer investigation, it was revealed that these services were unavailable for U.S. citizens, with TSMC even employing a Taiwanese doctor who was not licensed to practice medicine in the United States.

With this wave of allegations against TSMC, the world’s biggest semiconductor firm, faces a legal skirmish that could sour its relationship with the U.S. unless it quickly corrects the situation.

News Source: Forbes

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