TSMC Discrimination Lawsuit: Plaintiffs Seek Expansion in US Amidst Arizona Investment

Allegations of Workplace Discrimination Surface as TSMC Eyes Further Expansion in Arizona

San Jose, California – April 8 – The employment discrimination lawsuit against Taiwan Semiconductor Manufacturing Co. (TSMC), a leading contract chipmaker based in Taiwan, is poised for potential expansion following a recent hearing in a federal court in San Jose, California. The case, which centers around allegations of discriminatory employment practices, could see the addition of 15 new plaintiffs to the existing class action.

According to court documents, the lawsuit, initially refiled in November 2024 as a class action with 13 plaintiffs, seeks to incorporate 15 plaintiffs based in Arizona, where TSMC is making significant investments in wafer fab capacity.

TSMC has committed substantial funds to Arizona, including an initial US$65 billion investment between 2020 and 2024 for three advanced wafer fabs, with the first entering mass production in 2024. The company further announced a US$100 billion pledge in March 2025 to build three more fabs, two IC assembly plants, and a research and development center in the state.

The employment discrimination lawsuit was originally filed in August 2024 on behalf of Deborah Howington, who joined TSMC in February 2023 as a deputy director for talent acquisition in San Jose. The refiled complaint from November 2024 alleges that, as of December 31, 2023, a significant majority of TSMC's 2,668 North American workers were of Taiwanese and Chinese origin.

The plaintiffs claim this demonstrates an "intentional pattern and practice of employment discrimination against individuals who are not of East Asian race, not of Taiwanese or Chinese national origin, and who are not citizens of Taiwan or China." This includes "discrimination in hiring, staffing, promotion, and retention/termination decisions."

The complaint further alleges that "TSMC routinely subjects non-East Asians (including those who are not of Taiwanese or Chinese descent) to a hostile work environment where verbal abuse, gaslighting, isolation, and humiliation is common, and oftentimes leads to the constructive discharge of these employees." The plaintiffs claim that executives in TSMC's U.S. facilities often targeted and shouted at them publicly simply because they were Americans, calling them "lazy" and "stupid."

TSMC has denied these allegations.

Howington, accompanied by her lawyer Daniel Kotchen, spoke to reporters outside the hearing, emphasizing the importance of multinational companies adhering to U.S. laws. She acknowledged TSMC's success and commitment to the U.S. while expressing the hope that its endeavors in the country would flourish "by observing American laws."

"We've all experienced significant challenges related to discrimination, and we sincerely hope that they'll be addressed in an appropriate manner," Howington stated.

During the hearing, Kotchen argued that adding the 15 new plaintiffs would provide critical evidence to support the plaintiffs' claims of systematic discrimination and help the case proceed favorably. He emphasized the need to improve the working environment, particularly given TSMC's additional US$100 billion investment in Arizona.

In response, TSMC lawyer Fletcher Alford questioned the appropriateness of the Arizona-based plaintiffs filing suit in California. He also cited the seven-month duration of the case and the desire of both sides to expedite the trial, especially given TSMC's expansion in North America. Alford argued that adding more plaintiffs would not accelerate the process and urged the court not to grant the motion.

Judge Virginia DeMarchi noted the complexity of the case, highlighting the dual nature of the new plaintiffs seeking to join the class action while also pursuing individual claims.

While TSMC was not immediately available for comment following the hearing, the company previously defended its employment practices in a statement released in November 2024 after the refiling of the complaint. "TSMC believes strongly in the value of a diverse workforce and we hire and promote without regard to gender, religion, race, nationality, or political affiliation because we respect differences, and believe that equal employment opportunities strengthen our competitiveness," the statement read.