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.