TSMC’s Arizona plant is facing serious legal scrutiny as 17 former and current employees allege systemic discrimination, toxic workplace behavior, and unsafe working conditions that disproportionately affect non-Taiwanese staff-particularly Americans.
The lawsuit paints a grim picture of cultural tension, favoritism, and exclusion that contradicts TSMC’s public image of being a global semiconductor leader.
The case, recently refiled in California, claims that American workers were overlooked in favor of Mandarin-speaking applicants handpicked by HR in Taiwan. Job fairs and hiring materials were allegedly distributed exclusively in Chinese to attract “preferred” candidates, excluding American talent from the outset. Once hired, U.S. workers were reportedly thrown into a culture where Mandarin dominated everything-from meetings to internal emails-leaving them isolated and uninformed.
Training sessions were allegedly held entirely in Mandarin, with American staff sent to Taiwan only to be ignored, mocked, or even humiliated. One veteran said he was denied transportation accommodation despite service-related injuries-only to be hit by a car during his commute and abandoned at the hospital due to the language barrier.
Among the lawsuit’s more disturbing allegations: buttock-touching by older Taiwanese male engineers, sexually inappropriate jokes normalized at work, and a rubber chicken hung over a Black engineer’s desk, which was perceived as a racially charged act with zero consequences. Such actions, the suit argues, are symptoms of a deeper cultural intolerance that prioritizes conformity to “TSMC values” over inclusivity.
The issues go beyond cultural awkwardness. One lab technician allegedly suffered a chemical inhalation incident, only to have her medical needs mishandled by on-site staff. After reporting the incident to OSHA, she claims she was ostracized and left idle without work resources for hours daily.
Former HR executives described internal hostility toward Americans and non-Chinese colleagues, with management reportedly labeling U.S. staff as “lazy,” “stupid,” and unworthy of advancement. According to internal accounts, performance reviews favored those who adhered to 12-hour workdays, while American employees were penalized for pushing back against exploitative expectations.
While TSMC declined to comment beyond a general statement about inclusivity and site success, the sheer volume and consistency of complaints suggest a cultural chasm too deep to ignore. Whether these practices reflect corporate policy or a failure of leadership at the U.S. site remains to be seen. But what’s clear is that America’s semiconductor ambitions may come at a cultural cost-one that’s now under legal microscope.