Missed deadlines and tension among Taiwanese and American coworkers are plaguing TSMC's Phoenix expansion

From the article:

Over the past four months, Rest of World spoke with more than 20 current and former TSMC employees — from the U.S. and Taiwan — at the Arizona plant. All of them requested anonymity because they were not authorized to speak to the media or because they feared retaliation from the company. In February, Rest of World traveled to Phoenix to visit the growing TSMC complex and spend time with the nascent community of transplanted Taiwanese engineers.

The American engineers complained of rigid, counterproductive hierarchies at the company; Taiwanese TSMC veterans described their American counterparts as lacking the kind of dedication and obedience they believe to be the foundation of their company’s world-leading success.

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TSMC insiders told Rest of World the key to the company’s success is an intense, military-style work environment. Engineers work 12-hour days, and sometimes weekends too. Taiwanese commentators joke that the company runs on engineers with “slave mentalities” who “sell their livers” — local slang that underscores the intensity of the work.

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At Fab 18, nearly all communication took place in Taiwanese and Mandarin Chinese, the two most widely spoken languages in Taiwan. The Americans found it difficult to understand meetings, production guidelines, and chatter among local engineers. In theory, every American was supposed to have a Taiwanese buddy — a future Arizona worker who would help them navigate the workplace. But the Americans said their buddies were often too busy to help with translations, or else not familiar enough with the technical processes because they were freshly transferred from other production lines.

Many trainees, including Bruce, relied on Google Translate to get through the day, with mixed results. Technical terms and images were hard to decipher. One American engineer said that because staff were not allowed to upload work materials to Google, he tried to translate documents by copying Chinese text into a handwriting recognition program. It didn’t work very well.

One former American TSMC engineer who trained in Taiwan said his manager instructed him to follow along with daily handover meetings, which were conducted in Mandarin, just by looking at the associated PowerPoint presentations. “I was mind-blown at his expectations,” he told Rest of World. “I love challenges and pushing myself, but this was lunatic-level leadership.”

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[B]oth American and Taiwanese engineers said that the training for new hires was largely insufficient. Managers excluded Americans from higher-level meetings conducted in Mandarin, according to one ex-TSMC engineer. Some of the Americans said that they rarely had a chance to handle problems themselves, and were mostly tasked with observing. “It’s like math in school,” Bruce said. “You can watch your teacher do 500 practice problems on the chalkboard, but if you don’t do some problems on your own, you are going to fail the test.”

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For the Taiwanese, many of whom planned for extended stays in Phoenix, that meant relocating entire families — toddlers and dogs included — to a foreign country. Many regarded it as a once-in-a-lifetime opportunity to explore the world, practice English, and send their children to American schools. Younger families planned pregnancies so they could give birth to American citizens. “If we are going to have children, of course we will have them here,” a Taiwanese engineer told Rest of World. “As an American citizen, they will have more options than others.”

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Five former employees from the U.S. told Rest of World that TSMC engineers sometimes falsified or cherry-picked data for customers and managers. Sometimes, the engineers said, staff would manipulate data from testing tools or wafers to please managers who had seemingly impossible expectations. Other times, one engineer said, “because the workers were spread so thin, anything they could do to get work off their plate they would do.” Four American employees described TSMC culture as “save face”: Workers would strive to make a team, a department, or the company look good at the expense of efficiency and employee wellbeing.

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Three years after construction began, the first planned Phoenix plant is still incomplete. During an earnings call in April, TSMC chief executive C.C. Wei said the facility had entered “engineering wafer production,” meaning it’s making prototype wafers to prepare for commercial operation next year. In January, TSMC announced further delays at its second facility, too. Originally set to begin operations in 2026, it won’t open until 2027 or 2028.