TSMC’s Arizona plants, meant to boost US chip production and job creation under the CHIPS Act, are facing a new challenge. A group of TSMC’s US workers have filed a lawsuit accusing the Taiwanese company of anti-American discrimination.
In 2020, Apple announced plans to buy American-made chips for some devices, hailing it as a major success for the US industry. However, the project has been plagued by issues, including production delays and cost overruns.
One issue that arose early on was the hiring of around 500 Taiwanese workers to speed up construction work. This move sparked controversy, with almost half of TSMC’s hires coming from Taiwan. The company claimed it was necessary to meet tight deadlines, but critics argued it undermined US job creation efforts.
Now, a former HR executive at TSMC has filed a lawsuit claiming the company is discriminating against American workers in favor of Taiwanese staff. Deborah Howington alleges that TSMC specifically sought out Taiwanese candidates for US jobs and used an “Asian headhunter” to recruit them.
The lawsuit also accuses TSMC of holding local meetings in Mandarin rather than English to exclude American workers. The company has declined to comment on the allegations, stating only that it values diversity and promotes equal employment opportunities regardless of nationality or background. However, the plaintiff’s attorney argues that TSMC must comply with federal discrimination laws and treat all employees equally.
The lawsuit is the latest setback for TSMC’s US operations, which are now expected to produce chips in 2025 rather than 2024. The delay has raised concerns about whether US-made chips will cost more than those produced in Taiwan, potentially undermining Apple’s plans to buy American-made components.
Source: https://9to5mac.com/2024/11/14/lawsuit-by-us-workers-accuses-apple-chipmaker-tsmc-of-anti-american-discrimination