Current and former TSMC employees, including a director, sue for discrimination. An American factory hires Taiwanese citizens and refuses to hire Americans.
The lawsuit was filed by Deborah Howington, director of talent acquisition, in August. She claims to have observed the HR department create a workplace «in which non-Asian workers and non-Taiwanese citizens are subject to stricter scrutiny». Since then, about a dozen former TSMC employees have also joined the lawsuit.
TSMC wants to receive $11.6 billion dollars from the United States under the CHIPS Act. Of this amount, $6.6 billion is cash and $5 billion is a loan. TSMC is using the funds to build a production facility in Arizona.
«By accepting $6 billion in U.S. federal funding and choosing to compete in the U.S., it is imperative that TSMC comply with federal discrimination laws and treat all races, nationalities, and citizens equally. We are confident in our case and look forward to presenting it to the jury,» said plaintiff’s attorney Daniel Kotchen.
The complaint also says that TSMC’s human resources department in Taiwan sends the company’s U.S. division resumes of candidates who have already been vetted and can work in the U.S., and then the U.S. team «just hires these Asian/Taiwanese candidates without questioneven if no open positions were posted in the U.S.».
It is argued that Mandarin or other Chinese languages are required even if they are not needed for a specific position. Mandarin is used by for professional restriction of employees and preventing their career development.
TSMC declines to comment on the lawsuit, but notes:
«TSMC strongly believes in the value of a diverse workforce, and we hire and promote people 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 employees with a variety of channels to raise concerns and strive to address them constructively».
Earlier it was reported that TSMC has problems in the United States due to concerns about labor practices and adaptation to the US work culture. In October, TSMC’s US President Rick Cassidy said that the Phoenix fab had achieved 4% better performance than similar production sites in Taiwan during early tests.
Sources: Forbes, Tom’s Hardware