A class-action lawsuit against TSMC has now just gotten more intense. A number of TSMC employees at the company's Arizona fab accused the foundry of discrimination and, last year, even filed a class-action lawsuit against the company. The class-action lawsuit accused TSMC of bias against American employees at its Fab 21 in Arizona, and the lawsuit has now expanded to include over 30 plaintiffs, with allegations ranging from discrimination and harassment to unsafe working conditions. Some of the more bizarre allegations include the company attempting to purchase safety equipment on Temu and untoward physical contact.
Bias and racism
The re-filed class-action lawsuit, with 15 more plaintiffs, claims that the company systematically preferred workers from Taiwan and China while sidelining U.S. staff. Non-Asian employees were allegedly subjected to repeated insults, being labeled incompetent and unwilling to work. One former senior technician, Phillip Sterbinsky, said he was insulted by managers who called him 'stupid and lazy' and ultimately became the last non-Asian in his department before resigning in 2024.
Among the accusations are reports of openly racist remarks from Taiwanese staff members. Sterbinsky recounted hearing colleagues say that Black individuals were lazy and emitted unpleasant odors. Another plaintiff described arriving at the workplace to find a rubber chicken hanging over a Black coworker's desk, which he perceived as an act of targeted humiliation.
Several plaintiffs claimed that TSMC held meetings and sent invitations in Mandarin, effectively excluding employees who did not speak the language. Even when positions did not require Mandarin proficiency, job postings often listed it as a desired skill. Plaintiffs also stated that Taiwanese managers frequently switched to 'Chenglish' — a mix of Mandarin and English — to prevent American colleagues from understanding conversations.
The complaint further alleges that TSMC's Taiwan-based HR team funneled pre-approved Taiwanese candidates to the U.S. branch, where they were hired without any publicly advertised openings. This practice allegedly enabled the company to bring in more foreign workers and reduce the number of union positions available to U.S. staff. Generally, it is believed that approximately half of TSMC Fab 21 employees are from Taiwan.
TSMC does not comment on litigations, but last November it said it believed strongly in a diverse workforce.
"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," a statement sent to Tom's Hardware read. "We also provide various channels for employees to raise concerns, and strive to address concerns constructively."
Unsafe working conditions
One plaintiff, Marcus Hernandez, reported multiple safety violations at Fab 21. He described incidents in which managers pressured him to activate chemical systems without adequate protective gear. According to the lawsuit, TSMC even attempted to procure safety harnesses from the online marketplace Temu rather than from trustworthy suppliers.
Harassment and work culture
Harassment allegations also extend to physical contact. One male employee said he was repeatedly touched on the buttocks by older Taiwanese engineers. The same individual claimed he witnessed similar behavior directed at other American workers.
Complaints about the work culture also included long shifts, frequent weekend assignments, and relentless pressure to meet production targets. Employees described the environment as excessively harsh, with inadequate training and constant stress contributing to high turnover. TSMC managers from Taiwan reportedly argue that American workers are 'lazy,' 'do not work hard enough,' and 'do not know enough.'
When questioned about why American employees had been replaced by Taiwanese nationals, TSMC’s senior HR director, Ted Chiang, allegedly explained that the company was Asian. Meanwhile, former chairman Mark Liu previously stated that U.S. staff were not expected to match the strict work practices common in Taiwan, suggesting their conditions were easier.
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