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Taiwan chip giant TSMC files lawsuit alleging discrimination
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Taiwan chip giant TSMC files lawsuit alleging discrimination

More than a dozen U.S.-based employees of Taiwanese chipmaker giant TSMC have sued the company for blatant discrimination against non-Asian workers, according to a recently filed lawsuit.

The lawsuit alleges that the world’s largest contract maker of chips, used in everything from Apple iPhones to Nvidia’s AI hardware, unfairly favors Asian staff in terms of hiring, firing and labor standards.

The lawsuit, first filed in August, was re-filed last week as a class action lawsuit naming 13 plaintiffs.

Taiwan Semiconductor Manufacturing Company declined to comment on the lawsuit but said in a statement Thursday that it “strongly believes in the value of a diverse workforce.”

The company is at the forefront of a productive AI revolution, producing the world’s most advanced microchips needed to power products manufactured by Silicon Valley.

It secured billions of dollars in US financing and agreed to operate three factories in Arizona.

The lawsuit alleges that TSMC routinely subjects those who are not from Taiwan or China to “a hostile work environment where verbal harassment, humiliation, isolation, and humiliation are common, often leading to constructive discharge of these employees.”

The 13 plaintiffs, whose backgrounds included the United States, Mexico, Nigeria, Europe and Korea, were seeking damages to compensate for TSMC’s apparent discriminatory practices.

The lawsuit was first filed in August by TSMC hiring manager Deborah Howington, alleging that hiring and firing decisions were biased against Asians, especially Taiwanese citizens.

It claims that non-Asian workers “are often left out of work discussions because conversations are often held in Mandarin and business documents are routinely written in Mandarin.”

TSMC said in a statement: “We recruit and promote regardless of gender, religion, race, nationality or political opinion because we respect differences and believe that equal employment opportunities strengthen our competitiveness.”