Taiwan Semiconductor Manufacturing Company's highly anticipated Arizona facility is facing mounting legal challenges as a discrimination lawsuit has expanded to include over 30 current and former American employees. The case, which began with 12 plaintiffs in November 2024 and was refiled in June with additional complainants, presents serious allegations of systematic bias against non-Asian workers at what was meant to be a flagship example of advanced semiconductor manufacturing returning to American soil.
Lawsuit Timeline:
- November 2024: Initial lawsuit filed with 12 plaintiffs
- June 2025: Refiled with 15 additional plaintiffs
- Current: Over 30 plaintiffs total (17 mentioned in first article, 30+ in second)
Allegations of Systematic Hiring Discrimination
The lawsuit alleges that TSMC maintains preferential hiring practices that favor Taiwanese and Chinese candidates over American workers. According to the complaint, TSMC's Taiwan headquarters directly sends pre-vetted resumes of Asian candidates to the US facility, with local HR teams instructed to hire these individuals without question, even if no open roles have been posted in the US. The plaintiffs claim that job postings for North American positions frequently list Mandarin or Chinese language skills as required, preferred, or a plus, despite these languages not being necessary for the actual work performed.
Language Barriers Used as Exclusion Tools
Central to the discrimination claims is TSMC's alleged use of language as a tool to exclude American employees from advancement opportunities. The lawsuit describes how key business meetings are conducted exclusively in Mandarin, effectively shutting out non-East Asian workers from important discussions. American employees sent to Taiwan for training report being routinely excluded by Taiwanese colleagues who speak only in Mandarin in their presence, while receiving official communications and training materials entirely in Chinese.
Hostile Work Environment and Verbal Abuse
Multiple plaintiffs describe experiencing a hostile work environment characterized by verbal abuse and derogatory treatment. Former senior technician Phillip Sterbinsky, who was reportedly the only non-Asian remaining in his department when he left in 2024, claims he was routinely called stupid and lazy by managers. The lawsuit includes an account of a Taiwanese frontline manager stating during a meeting: I'm so embarrassed; Americans are lazy, they don't work hard enough, they don't know enough, and they don't know commitment.
Physical Harassment and Discriminatory Acts
The allegations extend beyond verbal abuse to include physical harassment and discriminatory behavior. Engineering technician Antonio Fisher, a US Air Force veteran, reports being repeatedly patted on the buttocks by older Taiwanese male engineers despite the unwelcome nature of this contact. In a particularly disturbing incident, Fisher discovered a rubber chicken hanging from the ceiling over his Black colleague's desk in 2024, which he interpreted as a racially motivated act of hostility.
Safety Violations and Inadequate Protection
Beyond discrimination claims, the lawsuit raises serious concerns about workplace safety standards at the Arizona facility. Laboratory technician Jyni Wyse alleges that after repeatedly requesting protective equipment, she inhaled chemicals that caused breathing difficulties and an elevated heart rate. The suit claims that instead of calling emergency services immediately, a TSMC nurse contacted the fire department rather than 911, ultimately forcing Wyse to drive herself to the hospital. Additional safety concerns include allegations that management pressured employees to operate chemical supply systems without proper safety gear and attempted to purchase safety harnesses from discount retailer Temu.
Company Response and Legal Proceedings
TSMC has declined to comment on the litigation beyond court filings, stating only that the company is committed to providing a safe, welcoming and inclusive environment for our employees, contractors, and everyone who works at our facilities around the world. The semiconductor giant emphasized its pride in the global team of more than 3,000 people working at the Arizona facility and its commitment to making the site a major center of American semiconductor manufacturing excellence.
TSMC Arizona Facility Scale:
- More than 3,000 employees currently working at the facility
- Represents major US investment in semiconductor manufacturing
- Part of broader US strategy to reduce dependence on Asian chip production
Broader Implications for US Semiconductor Strategy
This legal challenge comes at a critical time for US semiconductor manufacturing policy, as the Arizona facility represents a cornerstone of efforts to reduce American dependence on Asian chip production. The allegations, if proven true, could complicate the narrative of successful technology transfer and raise questions about workplace culture integration in foreign-owned manufacturing operations on American soil. The case, filed as 5:24-cv-5684-VKD in the United States District Court Northern District of California San Jose Division, continues to develop as more employees join the legal action.