TSMC’s facilities in Arizona are set to produce Apple chips for older models within the United States for the first time, yet the process has faced several challenges.
Recently, a group of TSMC’s US employees initiated legal action against the Taiwanese company, alleging ‘anti-American discrimination’…
A quick recap on the story so far
The announcement of a chip manufacturing plant by TSMC in Arizona was initially celebrated as a significant achievement for the US CHIPS Act, aimed at reducing reliance on China for advanced semiconductors and creating American jobs. Apple announced its intentions to purchase chips manufactured domestically for some of its products.
However, the optimism soon faded. The Arizona plant is limited to producing larger process chips designed for older devices, and TSMC has since requested increased subsidies and a reduction in regulations.
The project has fallen behind schedule and exceeded its budget, with production now postponed until 2025 instead of the previously planned 2024. There are also concerns that the higher costs of US-made chips may result in Apple purchasing fewer than initially anticipated.
Job creation in the US came into question when TSMC opted to hire approximately 500 Taiwanese workers to expedite construction. This decision led to tensions, as nearly half of the new hires were sourced from Taiwan.
Latest claim of anti-American discrimination
Current reports indicate that a TSMC HR executive has accused the company of illegal favoritism towards Taiwanese employees.
The lawsuit was originally filed in August by Deborah Howington, a talent acquisition executive at TSMC, in Northern District Court of California. Howington, part of TSMC’s HR leadership, alleged that she observed a pattern of unlawful preference for Taiwanese candidates and employees. This month, twelve former TSMC employees with similar claims joined the lawsuit.
Howington asserted that TSMC systematically prioritized Taiwanese applicants for US job openings and had secretly engaged an “Asian headhunter” for recruitment efforts […]
“Having accepted $6 billion in U.S. federal funding and chosen to compete in the U.S. market, TSMC must adhere to federal anti-discrimination laws and treat individuals of all nationalities and races equally,” stated the plaintiffs’ attorney, Daniel Kotchen, a partner at Kotchen & Low, in an interview with Forbes.
Additionally, TSMC has been accused of conducting local meetings in Mandarin instead of English, allegedly to exclude American employees.
TSMC has not responded to the lawsuit, opting not to provide comments while releasing a general statement regarding its company values.
TSMC strongly believes in the importance of a diverse workforce and commits to hiring and promoting individuals without regard to gender, religion, race, nationality, or political opinions, as we respect differences and believe that equal employment opportunities enhance our competitiveness.
Photo by Conny Schneider on Unsplash
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