Microchip Company Funded by Biden’s CHIPS Act Faces Lawsuit Over ‘Anti-American’ Work Culture

By Matthew Holloway |

In a significant legal development, the Taiwan Semiconductor Manufacturing Company (TSMC) is facing a class-action lawsuit from over a dozen current and former employees. This comes in the wake of TSMC’s expansion into Arizona, an initiative largely supported by the Biden administration’s CHIPS Act.

The lawsuit alleges that TSMC is engaging in discriminatory hiring practices that favor Taiwanese nationals over American workers. It claims that the company’s workforce in North America, which reportedly includes over 2,668 employees, is predominantly Asian—a situation the plaintiffs argue highlights an ongoing pattern of employment discrimination against non-Asian individuals.

Specifically, the suit articulates concerns about TSMC’s hiring of construction workers for its Arizona facility, claiming that the company initially prioritized Taiwanese workers due to a supposed shortage of local skilled labor. This led to widespread criticism from Arizona labor unions, prompting TSMC to shift to a more local hiring approach.

TSMC chairman Mark Liu acknowledged challenges in sourcing skilled workers during a visit from President Biden, who affirmed his gratitude toward TSMC. Connecting these developments, attorney Daniel Kotchen emphasized the responsibility of companies receiving federal funding to adhere to fair hiring practices.

Moreover, the lawsuit points out that TSMC applied for and received a substantial $6.6 billion grant from the federal government as part of the CHIPS Act, which requires a commitment to diversity in hiring. The plaintiffs suggest that the majority of TSMC’s Arizona workforce consists of Taiwanese nationals on work visas, thereby contravening these diversity commitments.

Deborah Howington, a talent acquisition executive at TSMC and the first plaintiff in the lawsuit, claims to have personally observed discriminatory tactics favoring Taiwanese applicants, including the use of an “Asian headhunter” for recruitment purposes.

In response to inquiries about the lawsuit, a TSMC spokesperson asserted the company’s commitment to diversity, stating that hiring practices at TSMC are based on merit rather than gender, race, nationality, or other affiliations.

As this lawsuit unfolds, it raises critical questions about fairness in hiring practices within a major industry influenced by federal policies aimed at boosting domestic manufacturing.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.