TSMC Faces Lawsuit Over Hostile Work Environment at Arizona Chip Fab

TSMC’s bold move to build advanced chip plants in Arizona – once hailed as a milestone for American semiconductor independence – has been overshadowed by a growing legal battle.

A new federal lawsuit paints a grim picture of working conditions inside the Phoenix fabs, alleging discrimination, safety lapses, and a toxic culture that pits American workers against their East Asian colleagues.

The world’s largest contract chipmaker, known for supplying Apple, Nvidia, AMD, and Qualcomm, was courted by both the Trump and Biden administrations. Trump laid the groundwork to bring the company to U.S. soil, while Biden’s CHIPS and Science Act supplied billions in subsidies to ensure multiple fabs would rise in the desert. The goal: reduce America’s reliance on Taiwan for chips critical to everything from iPhones to fighter jets.

But inside the gleaming Arizona facilities, workers say reality is far from the polished press releases. Fire safety expert David Amiri, hired in 2022, says he was punished for flagging safety violations. He is now among 28 former and current employees accusing TSMC of fostering a hostile workplace. Their lawsuit claims Americans were insulted as “lazy” and “stupid,” sidelined in favor of younger East Asian workers, and ignored when raising safety concerns. Verbal abuse, gaslighting, and humiliation allegedly became routine.

Former employee Antonio Fisher says he joined TSMC because of its global reputation, only to encounter repeated safety breaches – like machines being serviced without proper lockout protections. “We weren’t taken seriously,” he said. “The more we spoke out, the more we were treated as troublemakers.” The complaint also alleges age and gender discrimination, with recruiters pushed to hire “young talents” over experienced Americans and women.

TSMC, in its court filings, dismissed the claims as sensational fabrications designed to stir scandal. Yet the case has struck a nerve, highlighting cultural clashes that surfaced as early as 2022, when anonymous employees warned of crushing hours and endless meetings.

Despite the turmoil, production presses on. One Arizona fab has already begun shipping 4nm chips to Apple, turning out 10,000 wafers a month with plans to triple capacity. In a public statement, TSMC praised its 3,000-strong Arizona team and pledged to maintain “a safe, welcoming, and inclusive environment.” Whether the courts agree remains to be seen – but for now, America’s grand semiconductor gamble comes with serious workplace questions.