Six months after a worker was killed at the construction site of TSMC’s Arizona chip plant, state investigators have released a report stating it found dangerous workplace conditions at the site.

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.

TSMC Arizona
TSMC's Arizona site – TSMC

According to a report from local news outlet Arizona’s Family, ADOSH’s inspection into TSMC found workplace hazards including the use of over-pressurization, exposure to harmful materials, and exposure to falling debris.

A worker at the site who spoke to Arizona's Family but wished to remain anonymous also said there was no clear guidance on what to do during emergencies and that despite having security clearance to have a cell phone on site, there was no available signal meaning he would have been unable to contact someone in an emergency.

The original incident occurred on May 15, 2024, when 41-year-old Cesar Anguiano-Guitron died after a container of over-pressurized sulphuric acid exploded, causing Anguiano-Guitron to be hit by a blunt object and thrown 20 feet from the vehicle he was in.

According to the wife of a different worker at TSMC’s Arizona plant, when Anguiano-Guitron died, other employees at the site weren’t told about the explosion or evacuated from the site.

“We again extend our deepest condolences to the family of the person who passed away in this tragic incident," TSMC told DCD. "TSMC’s top priority is the safety and welfare of everyone who works on our site, including our suppliers and their subcontractors. We are reviewing the investigation report and general duty citation issued by ADOSH, and will take appropriate follow-up actions and continue our cooperative exchange of information with ADOSH in this matter.”

TSMC accused of “anti-American discrimination” in California lawsuit

Separately, a lawsuit has been filed in the state of California in which more than a dozen current and former TSMC employees allege the company has engaged in “anti-American” discrimination by favoring Taiwanese workers over US hires.

Originally filed in August by Deborah Howington, a talent acquisition executive at the company, Forbes has since reported that 12 former TSMC staff have now signed onto the suit, claiming similar allegations against the company.

According to the new complaint, which was filed last week, the former workers allege the chip maker’s parent company has established a “discriminatory scheme” that is “comprised almost exclusively of Taiwanese nationals who encourage — and expect — the US-based subsidiaries to obey TSMC’s discriminatory policies and practices without pushback, despite the fact that these policies and practices violate US law.”

One such example highlighted in the lawsuit is the company’s alleged preference for employees who have an understanding of Mandarin Chinese, with the plaintiffs claiming that business and meeting materials were often only provided in that language.

Howington also alleged that the company hired an “Asian headhunter” so it could find Taiwanese candidates to interview for US job roles, while another unnamed plaintiff claims that a healthcare company TSMC partnered with was only offering certain benefits to its Taiwanese staff.

In July 2023, TSMC announced it was delaying its Arizona fab due to struggles with finding enough skilled workers to open on time.

Commenting on delays at the time, TSMC chairman Mark Liu said: "While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time.”

According to the report from Forbes, as of last year, more than half of the 2,200 workers at TSMC’s Arizona facility are from Taiwan. The company was awarded $11.6 billion in CHIPS Act funding in April 2024, comprising $6.6 billion in grants and an additional $5 billion in loans.

DCD has reached out to TSMC for comment on the lawsuit.