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Chipmaker behemoth TSMC is at the heart of an intensifying class-action lawsuit, in which over 30 plaintiffs reported allegations ranging from racial abuse to unsafe work conditions.
The Taiwan Semiconductor Manufacturing Company (TWSC) is accused of bias against American employees, amid claims it gave systematic preference to workers from Taiwan and China over US staff.
The lawsuit contains a wide range of allegations, from Taiwanese managers frequently speaking ‘Chenglish,’ a hybrid of English and Mandarin, to serious incidents of racial harassment against Black employees.
It relates to staff formerly employed at TSMC’s Arizona facility, with the company’s main headquarters based in Hsinchu, Taiwan.
What accusations have been made against TSMC?
In the lawsuit, plaintiffs stated they were subject to insults from Taiwanese and Chinese management, including that they were incompetent or unwilling to work, accusing their employer of “anti-American bias.”
One former senior technician at the plant, Philip Sterbinsky, recalled being told he was “stupid and lazy” by one manager.
In another instance, one individual said Black people are “lazy and smell”, Sterbinsky alleged. Another plaintiff claimed one Black colleague had a rubber chicken placed above his desk in act of targeted humiliation.
The lawsuit was recently expanded to include 15 further plaintiffs, after initially being filed in November 2024. At the time, TSMC said it does not comment on ongoing legal proceedings but insisted it was committed to diversity and equal employment opportunities.
"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 said. “We also provide various channels for employees to raise concerns, and strive to address concerns constructively.”
Former employees also made allegations of physical harassment, with one plaintiff claiming he was repeatedly touched on the buttocks by senior engineers from Taiwan. The same individual also reported seeing similar conduct against other American employees.
Further claims included a stressful and harsh work culture, inadequate training, excessively long shifts, and frequent demands to work on weekends, all leading to high levels of turnover.
TSMC HR team at the center of class-action lawsuit
The lawsuit accused management at the TSMC facility of excluding English-speaking employees by sending invites and holding meetings in Mandarin, as well as listing Mandarin proficiency as a desired skill on most job posts.
Taiwanese bosses also frequently spoke in Mandarin to prevent American employees from understanding conversations, the plaintiffs claimed.
A key allegation was also made against TSMC’s HR team, which is based in Taiwan, arguing it pre-approved candidates to be hired into roles at the facility without publicly listing the job adverts.
That practice allowed TMSC to hire more foreign workers and lower the number of union positions available American workers, the suit argued, adding that the practice “willfully disregarded diversity commitments TSMC made in the CHIPS Act."
Sterbinsky reported being the only non-Chinese and non-Taiwanese employee left on his team when he exited his role, while the suit estimated that roughly half of the Arizona plant’s workforce is from Taiwan.
The lawsuit said TSMC’s Senior HR Director, Ted Chiang, was probed by employees about why some American staff had been replaced by Taiwanese workers. According to the plaintiffs, Chiang said those hiring decisions were made because the company is Asian.
Elsewhere in the lawsuit, one plaintiff reported unsafe work conditions, claiming he was pressured into working without adequate safety equipment.
TSMC “attempted to buy safety harnesses from Temu—a retailer known to sell products with safety and quality control issues that is under federal investigation, but backed off only after outcry,” the suit claimed.
