TSMC avoided Trump's tariff sanctions, but the personnel disputes involving 'anti-American' and 'racial discrimination' have not yet subsided.

TSMC will invest k billion US dollars in the United States, seemingly temporarily avoiding tariff sanctions, but the personnel dispute case accused by former employees is still ongoing. TSMC has promised to make a significant investment in Arizona, United States in the next four years in response to Trump's policy of prioritizing US manufacturing, seemingly temporarily avoiding the threat of heavy taxes, but a larger personnel storm is unfolding.

TSMC has opened two factories in Arizona with a planned investment of 650 billion US dollars, including 60 billion US dollars from the semiconductor and science bill subsidies implemented by Biden in 2022. Despite the news of TSMC's large-scale investment in the United States being broadcasted on major news websites worldwide, Trump's attitude towards tariff sanctions on countries such as Canada and Mexico has been inconsistent. Will Taiwan, which has been repeatedly singled out for taking away American chip business, be able to escape the predicament through TSMC's investment and largesse?

TSMC faces a collective lawsuit from former employees in the United States, accusing TSMC of racial discrimination and hostility towards "non-East Asian" employees, marginalizing "Americans," and having inappropriate workplace culture and sexual behavior. TSMC denies all allegations and has received support from some employees in Arizona. However, in order to establish a strong presence in the U.S. semiconductor industry in the long term, TSMC will inevitably encounter more cultural clashes in American society. Is TSMC prepared to manage Americans? TSMC issued a statement refusing to comment on pending lawsuits and claiming pride in the teamwork of nearly 3,000 employees.

American employees make multiple allegations against TSMC

When TSMC started its business in the United States in 2023, the factory in Arizona had production delays due to the failure to reach a labor agreement with the local union, and a series of personnel conflicts occurred, leading to showdowns in court, including a lawsuit brought by a former female HR manager in August last year. In February 2023, she served as the Deputy Director of Talent Acquisition at TSMC's North American headquarters in San Jose, California, accusing TSMC's top management of "racial and civil discrimination" and "hostile work environment".

The complaint alleges that employees who are not from East Asia, Taiwan, or China are often shouted at and criticized by Taiwanese management, including being called lazy and stupid in front of their colleagues, simply because they are Americans. TSMC uses funding provided by the Biden administration, but does not prioritize hiring American citizens. Instead, the priority for local recruitment is given to Taiwanese, Chinese, and East Asian individuals, most of whom come to the United States to work for TSMC through work visas.

TSMC responded to inquiries from The Washington Post, stating that TSMC has about 2200 employees in the United States, half of whom are from Taiwan. The current number of employees is close to 3000, with the majority being Americans.

The number of plaintiffs in TSMC's lawsuit has expanded to nearly thirty, including 16 residing in Arizona, who self-identify as white, Hispanic, African American, and other Asian ethnicities, including Koreans and Iranians.

The plaintiff filed another motion last month to amend the original complaint and add new allegations, including prostitution, drug use, sexual activities, and mishandling of chemicals, etc. TSMC responded by requesting the court to seal these new allegations from public records, referring to them as 'rumors,' 'gossip,' and 'scandals.' TSMC's representative lawyer rebutted in the documents that the new allegations are full of dirty little stories involving sex, drugs, and various sensational and chaotic tales, and denied them all.

On February 27 this year, a federal judge approved part of TSMC's motion to seal the amended complaint filed by the plaintiff, which included a large number of allegations of anonymous sexual assault by the plaintiff, listing only the names of the non-party suspects. Due to the sealing of the case, there are no further details available to the public.

In recent years, Taiwan has repeatedly heard about sexual harassment and workplace bullying incidents, not only in small and medium-sized enterprises, but also in the high-tech industry where employees are reported to be exploited and insulted in the workplace. In the United States, an annual salary of $300,000 for senior engineers is just the norm. In order to attract high-tech talents, leading technology companies in the United States not only offer high salaries but also provide a relatively friendly working environment for engineers to retain talent. In contrast, the treatment and working environment of senior engineers in Taiwan, besides the salary being much lower than countries like Japan, South Korea, and the United States, Taiwanese companies like to see employees working overtime, which has led to a strange phenomenon where those who actually get things done in an hour are criticized, while slackers who waste time in the office and work overtime are praised. Youtuber Chih-Chi Chi-Chi also frequently criticizes Taiwan's peculiar workplace culture. In the tech industry, results are paramount, and work performance and attitudes are not simply affirmed by 'working hours'.

Full-time engineers in the United States are mostly on a salary basis rather than hourly wages. According to the definition of the U.S. Department of Labor, employees with a weekly salary exceeding 2000 U.S. dollars are not subject to the Labor Standards Act. The salaries of most engineers exceed the market standards of the Department of Labor and are not inflated with overtime pay. This lawsuit is not really about money, but about TSMC establishing a plant in the United States as the world's largest semiconductor foundry, causing significant cultural shock to local people and senior engineers. These bizarre practices, however, are commonly seen in many traditional workplaces in Taiwan.

TSMC's expansion into the United States is a glory for Taiwan, but TSMC has encountered strong workplace cultural shocks in the United States, facing allegations of racial discrimination and anti-American sentiments from labor, which may lead to TSMC being ostracized by American society, unable to establish a good reputation for the company, and forming negative perceptions of Asian companies among Americans. Innocent until proven guilty, pending judgment.

This article TSMC has escaped Trump's tariff sanctions, but the personnel disputes involving "anti-American" and "racial discrimination" have not yet subsided. It first appeared on Chain News ABMedia.