TSMC Arizona Lawsuit: Racism, Bias, Unsafe Conditions Alleged

Case Overview: A class action lawsuit alleges Taiwan Semiconductor Manufacturing Company (TSMC) engaged in discriminatory hiring practices and fostered a toxic workplace culture at its Arizona facility.

Consumers Affected: Over 30 current and former employees of TSMC's Arizona facility.

Court: U.S. District Court for the District of Arizona (implied by context, Phoenix, Arizona's Family reports).

A class action lawsuit against Taiwan Semiconductor Manufacturing Company (TSMC) has expanded, with more than 30 current and former employees now accusing the company of discriminatory hiring practices and a toxic workplace culture at its Arizona facility.

Originally filed in late 2024 by a smaller group of employees, the case alleges that American workers were routinely passed over in favor of hires from Taiwan and China. Plaintiffs claim they faced language barriers, harassment, and even safety violations while working at TSMC’s Fab 21 in Phoenix, Arizona’s Family reports.

Workers Describe Bias, Isolation, and Mistreatment at Fab 21

Plaintiffs say they were routinely excluded in meetings and internal communications that were held in Mandarin, even for roles that didn’t require language proficiency. Some job postings reportedly listed Mandarin as a preferred skill, and internal conversations often shifted to “Chenglish,” making it difficult for non-Mandarin speakers to follow what was being said.

One former employee, Phillip Sterbinsky, a senior technician, described a hostile work environment in which he was yelled at and belittled by management. According to the lawsuit, he was eventually the only non-Taiwanese or non-Chinese member of his department. 

He also accuses the company of outright racist comments and actions saying Taiwanese colleagues made derogatory remarks about Black workers. Another employee said he was touched inappropriately on multiple occasions by senior engineers.

Reports of Dangerous Shortcuts and Safety Gaps Emerge

The lawsuit also highlights concerns about safety protocols (or the lack thereof) at the facility. Plaintiff Marcus Hernandez claims managers urged him to activate chemical systems without proper safety gear, exposing him to hazardous conditions. 

The lawsuit even alleges that TSMC once tried sourcing safety harnesses from Temu, an online marketplace known for low-cost, low-quality goods, backing off only after employees raised concerns. Employees said their warnings were ignored, and claim the company routinely dismissed safety violations.

Favoritism in Hiring and Alleged CHIPS Act Violations

The complaint alleges TSMC used its Taiwan-based HR department to funnel in candidates from overseas, hiring them directly into U.S. positions without publicly posting the jobs. This tactic, plaintiffs argue, both limited opportunities for U.S.-based workers and reduced the number of union-eligible roles.

The lawsuit also points to potential violations of diversity pledges made under the CHIPS Act. As of 2023, roughly half of the workforce at the Arizona plant reportedly consisted of visa-holding workers from Taiwan.

Former managers are said to have justified the disparity by claiming that American employees were less productive than their Taiwanese counterparts, according to the lawsuit. The former chairman of TSMC has also publicly stated that the company did not expect American staff to match Taiwan’s rigorous work expectations.

“If you are receiving federal funding to create jobs in the U.S., it is your responsibility to live up to the rules and laws under the U.S.,” attorney behind the case Daniel Kotchen told Arizona’s Family.

Have you worked at TSMC Arizona? Share your experiences or thoughts on these allegations below.