Taiwan Semiconductor Manufacturing Company was accused by a group of its U.S. employees of concocting a “discriminatory scheme” that favors Taiwanese foreign workers.

Taiwan Semiconductor Manufacturing Co (TSMC) can’t produce 2nm chips outside of Tawain, according to J.W. Kuo, the country's Minister of Economic Affairs. The Arizona fab 21 is still on track to produce 4nm chips in 2025.

TSMC is being sued by current and former employees, including a talent acquisition director, over alleged employment discrimination. The employees claim that TSMC, the world's largest chipmaker, has favored employees who are Taiwanese citizens and forced out American workers.

Recent legal documents reveal that twelve current and former employees from TSMC's California and Arizona facilities have accused the company of racial discrimination in recruitment, promotion, and employee management practices.