Taiwan Semiconductor Manufacturing Company (TSMC), one of the world’s largest advanced computer chip manufacturers, continues finding its efforts to get its Arizona facility up and running to be more difficult than it anticipated. The chip maker’s 5nm wafer fab was supposed to go online in 2024 but has faced numerous setbacks and now isn’t expected to begin production until 2025. The trouble the semiconductor has been facing boils down to a key difference between Taiwan and the U.S.: workplace culture. A New York Times report highlights the continuing struggle.
One big problem is that TSMC has been trying to do things the Taiwanese way, even in the U.S. In Taiwan, TSMC is known for extremely rigorous working conditions, including 12-hour work days that extend into the weekends and calling employees into work in the middle of the night for emergencies. TSMC managers in Taiwan are also known to use harsh treatment and threaten workers with being fired for relatively minor failures.
TSMC quickly learned that such practices won’t work in the U.S. Recent reports indicated that the company’s labor force in Arizona is leaving the new plant over these perceived abuses, and TSMC is struggling to fill those vacancies. TSMC is already heavily dependent on employees brought over from Taiwan, with almost half of its current 2,200 employees in Phoenix coming over as Taiwanese transplants.
Not a surprise given that worker rights are practically non-existant in the East.
Still wild that TSMC thought they could pull that on western workers. I hope they realize it’s not gonna happen and rethink their processes.
Similar stuff happened with US companies in the EU.
That stuff even happens with UK companies taking over German companies. They think they can just fire the members of the working council, very bad mistake! Remember, if you go to another country, you have to adjust to their law.
Big business knows no national boundaries. They’ll build factories wherever labor is cheap, put headquarters wherever the taxes are low, and sell their wares wherever consumer rights are weak.
Yes, there is an irony that it’s typically the anti-capitalist left and the hyper-capitalist corporate right that are most supportive of open-border policies.
They’re probably more likely to pack up and leave. Some people are just too stubborn-stupid to adapt.
They aren’t stubborn, it’s simply way easier for them to make a profit in Taiwan instead. If ever the workers in Taiwan refused 12 hour shifts then TSMC would see the writing on the wall.
Something similar happened when Foxconn first opened iPhone in India.