The lawsuit claims the company “willfully disregarded diversity commitments TSMC made in the CHIPS Act,” noting that as of last year, approximately half of TSMC Arizona’s 2,200-person U.S. workforce comprises of visa holders from Taiwan.

Consequently, the Arizona Division of Occupational Safety and Health (ADOSH) has issued TSMC with a fine of $16,131 for failing to keep the workplace free from hazards likely to cause death or serious harm.

Deborah Howington, a talent acquisition director, filed the class-action suit in August. She claims that the HR department created a workplace at TSMC where non-Asian employees

TSMC’s announcement that it was building a chip fabrication plant in Arizona was hailed as a major success for the US CHIPS Act – intended to free the US from dependence on China for advanced chip supplies, and to generate jobs for US workers. Apple proudly announced that it would be buying American-made chips for some of its devices.

Taiwan Semiconductor Manufacturing Company was accused by a group of its U.S. employees of concocting a “discriminatory scheme” that favors Taiwanese foreign workers.

Recent legal documents reveal that twelve current and former employees from TSMC's California and Arizona facilities have accused the company of racial discrimination in recruitment, promotion, and employee management practices.