On July 6, a group of 17 current and former U.S. employees filed a class-action lawsuit against Taiwan Semiconductor Manufacturing Company (TSMC), alleging systemic discrimination, a hostile work environment, and safety violations at the company's Arizona fab. The case was submitted to the U.S. District Court for the Northern District of California, expanding on a similar lawsuit filed by 12 employees in November 2024.

The plaintiffs claim TSMC favored hiring workers from Taiwan and mainland China, often excluding non-East Asian applicants. They allege that job fair invitations, internal documents, and even key meetings were conducted in Chinese, marginalizing American employees. Some U.S. workers said they were openly mocked as “lazy” and “stupid” by Taiwanese managers.

James Perry, a former HR director and one of the plaintiffs, claimed a frontline Taiwanese supervisor told American employees in a meeting: “I'm ashamed of you. Americans are lazy, unmotivated, and lack professionalism.” Another plaintiff, Antonio Fisher, a U.S. military veteran, said he was injured in a traffic accident during company training in Taiwan, where he was denied translation support for medical care. He also alleged repeated inappropriate touching by a Taiwanese engineer and described the work environment as demeaning, including an incident where a rubber chicken was hung over the desk of a Black employee.

The lawsuit outlines several serious allegations:

 ● Workplace discrimination: Favoritism toward Mandarin-speaking workers, with hiring, promotion opportunities, meetings, and internal communications conducted primarily in Chinese, effectively sidelining non-Chinese-speaking employees.

 ● Hostile work culture: Verbal abuse from Taiwanese managers, stricter performance evaluations for U.S. workers, and consistent belittling of non-East Asian staff.

 ● Safety concerns and harassment: Reports of chemical exposure without proper protective equipment or emergency support. One lab technician said she inhaled hazardous fumes and was denied permission to call 911. Others cited retaliatory behavior after voicing complaints, lack of safety training, and attempts by supervisors to procure substandard safety gear.

Plaintiffs also claimed that nearly half of the workforce at TSMC's Arizona fab is employed on foreign work visas, and that American employees were gradually pushed out.

In response, TSMC said it does not comment on ongoing litigation. The company emphasized its pride in its 3,000-member global workforce and reaffirmed its commitment to maintaining a safe, inclusive, and respectful workplace. “We value input from all team members, including contractors, and are dedicated to resolving concerns through constructive channels,” the company stated.

The lawsuit comes at a critical time as TSMC scales up production at its $40 billion Arizona chip facility, a key piece of the U.S. government's semiconductor strategy.