this post was submitted on 09 Aug 2024
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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.

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[–] Treczoks 266 points 1 month ago (2 children)

Just imagine what they would face in Europe, where workers even have rights!

[–] SlopppyEngineer 99 points 1 month ago (1 children)

Teaching the Asian colleagues the fine art of blocking factories and burning tires.

[–] [email protected] 33 points 1 month ago (1 children)

Idk I seen the South Korean picket lines, that looks like solidarity to me.

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[–] [email protected] 197 points 1 month ago* (last edited 1 month ago) (3 children)

I'm reminded of the time Walmart tried to enter Germany with their work culture. But in their case it wasn't just that the Germans didn't like it. It was illegal. And the German customers were weirded out by Walmart employees smiling and being so cheerful all the time.

[–] [email protected] 73 points 1 month ago

Apple still tries to have the cherry up-beat customer services department in the UK and it doesn't work. It's a Saturday, no one wants to be doing this call, don't pretend otherwise it's weird.

[–] rottingleaf 28 points 1 month ago (3 children)

But in their case it wasn’t just that the Germans didn’t like it. It was illegal.

I want to learn more?...

[–] [email protected] 50 points 1 month ago (5 children)

https://youtu.be/59AMOwlf6XQ

Don't know if it's in the video, but as far as I remember it was about how working hours were calculated and about worker surveillance. And Walmart trying to control worker's private lifes by forbidding sexual relationships between workers.

[–] [email protected] 33 points 1 month ago* (last edited 1 month ago) (2 children)

Also things like selling their loss leaders below purchase price. The kicker is that they still lost the price war they started even though the German discounters kept things legal.

Then there was something about not wanting to publish their balance sheets as they're required to, shutting out the works council from stuff that the works council has a right to be involved in, the list is endless. Not only did they not have a German CEO to manage all that stuff they apparently didn't even have German lawyers.

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[–] Kushan 174 points 1 month ago (5 children)

This makes me laugh because I work for a UK company that was bought out by an American company, who's trying to treat the UK staff how they would treat US staff - and it's not going well.

Our American colleagues cannot fathom how much time we take off for holidays, especially around Christmas. They also got a shock when doing some recent "restructuring" they couldn't just fire a bunch of UK folks.

[–] teft 61 points 1 month ago

Our American colleagues cannot fathom how much time we take off for holidays

So many days if it’s like colombia. They have 37 holidays off each year. It’s great but im constantly forgetting which days are festivals so i always end up walking to the store and then returning home dejected because i couldn’t buy my cheese.

[–] [email protected] 52 points 1 month ago (1 children)

In china I had a UK roommate. He was on the phone with his mom mid week when she should have been at work. I asked if she was sick and he was like "No. She took some vacation days to tidy the house." My jaw hit the floor. My vacation days in the US were so precious and so few that I'd never fathom using any to do chores. Unreal that you can have so much vacation you'd elect to spend it doing chores.

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[–] [email protected] 27 points 1 month ago

Sounds like the time Walmart tried to get a foothold in germany. Their american way of treating workers, but especially their way of treating customers (greeters at the door) crashed and burned hard here.

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[–] NeoNachtwaechter 136 points 1 month ago (1 children)

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.

Funny. The same issues that Tesla is experiencing in Germany.

[–] Badeendje 95 points 1 month ago (24 children)

Yeah.. I personally was surprised there are developed nations with a more toxic corpo culture than the US. But apparently the Asian powerhouses are all built on corporate servitude.

[–] [email protected] 66 points 1 month ago

For a lot of Asian countries the "asian dream" is still somewhat realistic.

Just look at China or Korea. Many of the older folks there grew up in abject poverty, but the countries managed to develop themselves through hard labor into modern, wealthy nations. The promise of "my kids will have it better" was actually true for them. And that promise still drives a lot of the work culture. In China the first cracks already appear, since for the first time in 50 years or so, the current youth has no way up anymore.

[–] [email protected] 42 points 1 month ago (2 children)

You'd be surprised to hear about Japanese & Korean work culture.

[–] Badeendje 25 points 1 month ago

Yeah.. korea, Japan, Taiwan, China

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[–] [email protected] 121 points 1 month ago (6 children)

Happy workers are hard workers, treat them like shit and they'll walk right out the door.

[–] BigTrout75 41 points 1 month ago

Correct! Well unless, they're starving and need to feed their families.

[–] [email protected] 40 points 1 month ago (2 children)

Aren't the machines TSMC uses made in the Netherlands? They're the only ones who can get down to that size, and they do it working 36 hours a week...

[–] [email protected] 31 points 1 month ago

My brother worked for such a Dutch company (ASM) and often got sent overseas to supervise the setting up of the production lines with these machines.

He mentioned when he'd get sent to Asia, the workers would make sure to get it done over a weekend, while implementing the same setup would take 2 to 3 weeks in the US. In part that was due to the working conditions mentioned, but also simple lack of planning in case of the latter (things would grind down to a haalt because certain changes would need to be made, and the person responsible for the decision wouldn't respond for hours or days, etc).

Side note: while 36 hour work weeks are common in the Netherlands, 40 hours is still the norm in my experience.

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[–] cyd 21 points 1 month ago (6 children)

Funny thing is, TSMC in Taiwan is considered a premium employer. It offers much better pay and parks than other companies.

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[–] [email protected] 79 points 1 month ago (11 children)

3 new chip fabs open recently around phx, which is in low-altitude desert, has had water supply issues for so long there's a canal running from the Colo river through it all the way to Tucson.

Which is fed by a reservoir so low they find old mobster kills in barrels and might have to stop making power.

Why so stupid and short-sighted?

Ah, "faith-based".

And a Republican governor made the deals. Who also allowed water to be used to grow alfalfa that's sent to Saudi to feed their horses.

$$$ + no sense

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[–] [email protected] 65 points 1 month ago (3 children)

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.

[–] nadir 75 points 1 month ago (1 children)

Similar stuff happened with US companies in the EU.

[–] Matumb0 41 points 1 month ago (1 children)

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.

[–] [email protected] 23 points 1 month ago (1 children)

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.

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[–] jeffw 64 points 1 month ago (1 children)

Really? Nobody at TSMC thought to google “biggest mistake companies make when opening US plants”? Because this has all happened before

[–] rottingleaf 31 points 1 month ago

Because this has all happened before

Humans generally don't consider this.

Specifically East Asian managers, I suppose, think they are the ones who'll finally do it right and make the serfs grow rice by the schedule and without complaints, and those previous attempts were done by some failures and discards who don't know how to hammer down nails that go up and so on.

(Not racist, just joking)

[–] [email protected] 62 points 1 month ago (1 children)

Sounds like they need a union

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[–] [email protected] 57 points 1 month ago

Beatings will continue until morale improves.

These shiti corps are dealing with demographic shift in US labour force coupled with severe disillusionment since comp barely justifies showing uo half the time.

Why anyone would break a sweat to make another man rich lol

People are taking notice.

[–] obinice 55 points 1 month ago

perceived abuses

Way to be passive aggressive, haha. Next they'll be apologising "we're sorry you feel that way" :P

[–] AgentGrimstone 52 points 1 month ago (4 children)

I remember watching a documentary a few years ago where this exact situation happened. Chinese company buys American company, tries to establish their work culture and it just doesn't work.

[–] [email protected] 32 points 1 month ago

It’s the same the world over. I’ve worked for years for a western company which has got a large part of their business in Asia and China.

You try taking our “western ways” of leadership to China and see how well it fares; what I would consider “leaving space for a leader to operate and feel accountable” is seen as “my leader has no fucking clue what he is doing; he never tells me what he wants me to do”.

Culture eats everything for breakfast. As a western leader in China you have to act like a controlling maniac (in my cultural frame) to be seen as an effective leader in China.

And it goes both ways. My brother reports to a Chinese manager transplanted to the west and she “desperately wants to micromanage everything” according to the western team.

We are all trying our best.

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[–] RizzRustbolt 45 points 1 month ago (1 children)

largest microchip manufacturer on the planet

front entrance looks like an abandoned 80s era mall

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[–] b3an 42 points 1 month ago (1 children)

It doesn’t mean that the US factory is any less capable. What needs reworking is meeting the expectation and planning for contingencies. There should be ongoing shifts, specialized teams, rotation, mitigation, etc. I think our output is comparable but it’s done more safely and sustainable over a longer time VS grinding workers to dust and replacing them.

[–] [email protected] 49 points 1 month ago (1 children)

It's not about capabilities, it's about cost.

If you can exploit your workers, pay shit wages for long hours, you'll get a cheaper product. You can get the same output by applying higher standards, but that would mean hiring more people.

[–] [email protected] 26 points 1 month ago* (last edited 1 month ago) (1 children)

The more time i spend in manufacturing environments ( I spend all my time there) the less i see actual product being the finished good. Business are setting themselves up for this autopilot pipe dream of "AI gonna fix everything" marketing/engineering utopia and in reality all it's doing is dividing your operations crew and management. They are neglecting equipment, default mode of compliance is non compliance because of awful processes and quality cutbacks (staffing staffing staffing) and at the end you get a product that's probably not gmp but who cares it's shipping.

[–] [email protected] 19 points 1 month ago (7 children)

That's the nature of capitalism.

Look at healthcare, software, construction. Unless there's a very clear incentive to produce high quality (laws or enforceable contracts) things will go lower and lower in quality.

And unfortunately, a lot of consumers don't care all that much about quality. They want crap that looks fancy.

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[–] Entropywins 41 points 1 month ago (8 children)

I work in a fab and it's pretty industry standard to run 12 hr shifts for operators (3 on 4 off then 4 on 3 off) and if your in engineering or IT be ready to be on call cause they don't want a 20-100 million+ machine down any longer then absolutely necessary.

[–] [email protected] 44 points 1 month ago (8 children)

I also work in a fab. We have the 3-4-4-3 rotating shift pattern just like everyone else, but we don't treat our people like cattle, unlike TSMC. We also tend to slightly overstaff, versus TSMC that understaffs and drives their people harder to make up for the difference.

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[–] [email protected] 28 points 1 month ago (5 children)

Hire more to work regular 8h shifts.

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[–] wolfylow 38 points 1 month ago (3 children)

Reminds me of the Netflix show “American Factory” about a Chinese factory opening in the US.

Quite a fascinating clash of cultures.

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[–] randon31415 30 points 1 month ago

While TSMC is considered by many in Taiwan as the pinnacle of engineering jobs, other companies in Arizona are competing for that labor pool. Intel, in particular, is expanding its Arizona chip factory.

Ya, so about Intel.....

[–] [email protected] 29 points 1 month ago

Is this what they mean when they say they're creating jobs?

[–] daddy32 28 points 1 month ago (1 children)

Same thing happened when Kia entered Europe. Unusually low pay combined with mandatory morning employee marching and exercising in the factory, combined with threats of physical punishment for "under performing" workers.

[–] NeoNachtwaechter 21 points 1 month ago

threats of physical punishment

This can bring people to jail in Germany.

[–] [email protected] 27 points 1 month ago

I hope they can be held accountable for mistreating those 'transplants" (what an ugly word!) too. But I guess that would be easier here in EU than in USA.

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