A lawsuit alleges that TSMC's Phoenix factory has a hostile work environment.

The decision by TSMC to establish chip manufacturing plants in Arizona was considered significant for the U.S. TSMC is the world's leading contract chip producer, manufacturing chips for fabless companies that design them, including tech giants such as Apple, Nvidia, Qualcomm, MediaTek, Broadcom, and AMD.

Most of TSMC's chip production occurs in Taiwan, and the U.S. has aimed to achieve self-sufficiency in semiconductors. The Trump administration initially facilitated TSMC's plans to construct factories in the U.S., and President Biden later enacted the CHIPS and Science Act, which provided billions in subsidies to support TSMC's plan to build up to six fabs in Arizona.

However, integrating American workers with TSMC employees brought in to oversee construction and operations has faced challenges. David Amiri, a fire safety expert hired in 2022 to ensure safety at the first TSMC factory in Phoenix, alleges that his concerns about safety issues were dismissed by his superiors.

Amiri is among 28 current and former TSMC employees involved in a lawsuit against the company in Federal Court. The suit accuses TSMC of discrimination, fostering a hostile work environment, and neglecting safety. It also alleges that TSMC employees have verbally abused American workers, labeling them as "lazy" and "stupid," while favoring East Asian employees. The suit claims TSMC "routinely subjects non-East Asians to a hostile work environment where verbal abuse, gaslighting, isolation and humiliation is common."

Attorney Daniel Kotchen, representing the employees, stated, "The allegation is that TSMC engages in what's called a pattern or practice of discrimination where there is favoritism." TSMC did not comment to the local ABC affiliate in Phoenix but responded in court filings, describing the 160-page lawsuit as "full of lurid, fabricated stories with no relevance to their legal claims and for the purposes of promoting public scandal and defaming TSMC."

In 2022, reports emerged about this issue. An anonymous post from an American TSMC employee described long hours and numerous meetings. The cultural differences mentioned in that earlier report have now culminated in the current lawsuit.

Antonio Fisher, another former American employee at the TSMC fab in Phoenix, stated, "The reason why I took the job at TSMC is because I know they’re the industry leaders." He said he quickly became disillusioned by the frequent safety violations he witnessed, including the failure to use lockout/tagout procedures.

Fisher's experience appears to reflect the sentiments of many U.S. employees. "We weren’t taken seriously. The more we spoke out, the more we were ostracized and considered troublemakers." The lawsuit also claims that "...TSMC disfavors older American workers and women, alleging that recruiters are instead expected to seek out "young talents."

TSMC released a statement saying, "We’re proud of the global team of more than 3000 people that has come together to make our new facility in Arizona a success, and we look forward to growing the site into a major center of American semiconductor manufacturing excellence. TSMC is committed to providing a safe, welcoming, and inclusive environment for our employees, contractors, and everyone who works at our facilities around the world."

One fab in Arizona is producing 4nm chips and shipping them to customers such as Apple. Current production is at 10,000 wafers per month, with plans to increase to 30,000 per month in the coming years.