The establishment of TSMC’s facilities in Arizona marks a milestone for the production of Apple chips designed for older devices, but the endeavor has encountered significant challenges.
The most recent news indicates that a collective of employees in the US has initiated legal action against the Taiwanese chip manufacturer, alleging ‘anti-American discrimination’…
A brief overview of the situation thus far
The announcement by TSMC regarding the construction of a chip manufacturing plant in Arizona was initially celebrated as a notable achievement for the US CHIPS Act, aimed at reducing dependence on China for advanced semiconductor supplies while creating job opportunities for American workers. Apple also expressed its commitment to sourcing chips made in the US for certain devices.
However, the initial excitement has waned. The plant is set to produce only larger process chips, which are compatible solely with older Apple devices, and TSMC has since sought increased subsidies and relaxed regulations.
The project’s timeline is slipping, with costs overrunning and production now postponed to 2025, a delay from the previously anticipated 2024 start. Concerns have arisen about US-made chips potentially being more expensive than those produced in Taiwan, which might lead to a reduction in Apple’s planned purchases.
Doubt regarding US job creation surfaced when TSMC opted to import approximately 500 Taiwanese workers to accelerate construction efforts, leading to significant tension as nearly half of the hires were imported from Taiwan.
Recent allegations of anti-American discrimination
Now, a member of TSMC’s own HR team has claimed that the company is engaging in illegal discrimination favoring Taiwanese employees, as reported by Forbes.
The lawsuit was initially filed in August by Deborah Howington, an active talent acquisition executive at TSMC, in California’s Northern District Court. As part of TSMC’s HR leadership, she reported observing a practice of unlawful discrimination that preferred Taiwanese employees and candidates. This month, twelve former TSMC employees with similar experiences have joined the lawsuit.
Howington asserted that TSMC actively sought out Taiwanese candidates for US job openings and privately collaborated with an “Asian headhunter” to recruit these individuals […].
“Having accepted $6 billion in U.S. federal funding and opted to compete in the U.S. market, TSMC must adhere to federal discrimination laws and ensure equal treatment for all races, nationalities, and citizens,” stated the plaintiffs’ attorney, Daniel Kotchen, a partner at Kotchen & Low, to Forbes.
Additionally, the company is accused of conducting local meetings in Mandarin instead of English, allegedly to exclude American workers.
TSMC has yet to respond to the lawsuit and has chosen not to comment, releasing only a general statement about its principles.
TSMC strongly values a diverse workforce and is committed to hiring and promoting employees without regard to gender, religion, race, nationality, or political beliefs, as we respect diversity and believe that equal employment opportunities enhance our competitiveness.
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