TSMC’s Arizona Plant: 50% Staff from Taiwan, Plans to Boost US Hiring Amid Controversies

Since the initiation of its Fab 21 construction near Phoenix, Arizona, TSMC has announced plans to bring over more than 1,000 skilled workers from Taiwan to ensure the project is completed timely and within budget constraints. This decision sparked outrage among local Arizona unions who claimed that this move deprived local workers of job opportunities, escalating tensions to the point of a racial discrimination lawsuit. As of now, approximately half of the workforce at the facility still consists of Taiwanese nationals, though TSMC has plans to adjust this ratio as it expands the site, according to a report by the New York Times.

Currently, out of the 2,200 employees at the Arizona-based Fab 21, about half are from Taiwan. TSMC’s initial promises in 2020 aimed at bolstering local employment, so the large number of Taiwanese workers directly contradicts the company’s commitment to Arizona’s workforce, causing discontent among local unions.

Furthermore, TSMC has faced criticism for employment practices that are at odds with typical U.S. standards, such as requiring long working hours. Over time, allegations have surfaced suggesting that Taiwanese employees are favored for promotions, leading to legal challenges.

Despite these challenges, TSMC anticipates an increase in the proportion of American workers at the Fab 21 site as they continue to develop additional phases over the next five years. The company projects that as their current employees gain more insight into operations and advance within the company, alongside new hiring, the balance will shift. The entire three-phase project is expected to generate approximately 6,000 high-paying jobs.

It remains uncertain whether the upcoming phases of Fab 21 will be staffed by existing employees or if new workers from Taiwan will be brought in. The second phase of Fab 21 will focus on producing advanced chips using TSMC’s N3 (3nm-class) technology, while the third phase will incorporate N2 (2nm-class) and A16 (1.6nm-class) technologies, which include enhancements in backside power delivery, performance, and transistor density.

However, these newer N3, N2, and A16 technologies differ from the N4 and N5 nodes used in the first phase of Fab 21. This could mean that TSMC might prefer to import more workers from Taiwan who possess the specific expertise needed to operate these different tools and assist with the ramp-up of the fab, due to their unique and valuable experience that is not yet widely available among the U.S. workforce.