Lawsuit filed against TSMC in U.S. for bias, racism, and unsafe practices

The Chipmaking giant TSMC is facing a class-action lawsuit in the U.S. for allegations of bias, racism, and unsafe working conditions. What started with a few employees accusing TSMC of discrimination at its Arizona fab has now turned into a lawsuit involving over 30 plaintiffs. The accusations range from biased practices against American employees to discriminatory behavior and unsafe working environments. Some of the reported incidents include attempts to purchase safety equipment from dubious sources and inappropriate physical contact.

The re-filed lawsuit now includes 15 more plaintiffs, expanding the claims of bias against American workers at TSMC. Non-Asian employees at the company allegedly faced insults, incompetence labels, and discrimination. For instance, one former senior technician, Phillip Sterbinsky, reported being belittled by managers who called him ‘stupid and lazy’, eventually leading him to resign in 2024. Shockingly, there were reports of openly racist remarks from Taiwanese employees, including derogatory comments about Black individuals and targeted humiliation tactics such as a rubber chicken hanging over a Black coworker’s desk.

Furthermore, several plaintiffs accused TSMC of language-based discrimination, claiming that the company conducted meetings and sent invitations in Mandarin, effectively excluding employees who did not speak the language. Even job postings were said to list Mandarin proficiency as a desired skill, despite the positions not requiring it. Taiwanese managers reportedly switched to ‘Chenglish’ during conversations to prevent American colleagues from understanding them. Additionally, the lawsuit alleges that the company’s HR team in Taiwan favored Taiwanese candidates, funneling them into the U.S. branch without publicly advertising the positions, thereby reducing opportunities for American staff.

TSMC has refrained from commenting on the ongoing litigations, but in a statement from last November, the company emphasized the importance of a diverse workforce. They claimed to hire and promote employees irrespective of gender, religion, race, nationality, or political affiliation, aiming to foster equal employment opportunities and strengthen competitiveness. Despite the allegations and legal challenges, TSMC stands by its commitment to diversity and respect for individual differences.

In addition to accusations of bias and racism, the lawsuit also includes claims of unsafe working conditions at TSMC’s Arizona fab. One plaintiff, Marcus Hernandez, detailed safety violations at the facility, including instances where managers pressured employees to work with chemical systems without adequate protective gear. The lawsuit even mentioned TSMC’s questionable procurement practices, such as trying to source safety harnesses from unreliable online platforms instead of reputable suppliers.

The class-action lawsuit against TSMC highlights deep-rooted issues of discrimination, unsafe practices, and cultural insensitivity within the tech industry. It calls for a thorough investigation into the company’s policies and behaviors to ensure fair treatment of all employees and a safe working environment for everyone involved.