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.
Just imagine what they would face in Europe, where workers even have rights!
Teaching the Asian colleagues the fine art of blocking factories and burning tires.
Idk I seen the South Korean picket lines, that looks like solidarity to me.
And that’s why they won’t set up a fab in Europe, the cost of manufacturing would simply be too high.
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.
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.
But in their case it wasn’t just that the Germans didn’t like it. It was illegal.
I want to learn more?..
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.
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.
And Walmart trying to control worker’s private lifes by forbidding sexual relationships between workers.
Just why would they do that? And were that their concern, wouldn’t such people work better, not worse?
I guess the rational is that a breakup would lead to worse job performance.
Well, that’s quite strange math, the amount of breakups between Walmart employees is expected to be less that the amount of relationships. Facts from the former are mostly a subset of facts from the latter actually.
Unless we consider the possibility that couples come to work at Walmart and break up there, but couples rarely form while already there.
Justification I’ve heard is that if one part of the couple is managing the other, or is promoted after the relationship started, then:
- there is a power imbalance in the couple, possibly one is coercing the other (« I can’t leave him/her, they’ll make my worklife hell / get me fired »);
- there is a risk the manager will promote their partner even if their job performance doesn’t warrant it
Companies will want to both avoid this sort of things, and avoid being seen to enable this sort of things. They might want to move one of the parties to a different department so that the higher up one doesn’t make promotion decisions for the other.
I’ve once worked at a company that wanted to know about relationships between their employees and suppliers/customers’ employees, again because that might enable situations where a supplier / customer is treater favourably because of personal relationships
By law: 8 hours as the rule, never more than 10 hours for exceptions.
By contract, they can go a little above the 8 hours.
If they go above the 10, it can cost the company a lot even for a single case.
So they didn’t plan even for such simple things. Wow.
Happy workers are hard workers, treat them like shit and they’ll walk right out the door.
Correct! Well unless, they’re starving and need to feed their families.
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…
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.
Funny thing is, TSMC in Taiwan is considered a premium employer. It offers much better pay and parks than other companies.
Parks?
Perks
Now we don’t know they don’t have kick-ass parks.
You can’t say that, having a park at work is a hell of a perk.
Science park expansion ratified: https://www.taipeitimes.com/News/biz/archives/2023/12/27/2003811196
It can’t be just that. The cultural difference is real in the sense that there is in Asia in general more obedience or reverence or discipline or selflessness or whatever you call it, that you simply don’t find at scale in western civilisations. Whether it’s good or bad I don’t judge
Well, it’s bad from a western POV.
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.
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.
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.
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.
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.
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.
You’d be surprised to hear about Japanese & Korean work culture.
Yeah… korea, Japan, Taiwan, China
Central/Eastern Europe somewhat does.
Also, I don’t like how in much of Europe for many jobs you can’t quit at will, you legally have to give notice (and sometimes not a short one).
At will employment is horse shit. A notice period on a month or 2 months is fine… you agree up front so you know. And your next employer counts this in when hiring. And mostly you have some vacation days you can take to shorten it a bit.
In the Netherlands a determined contract of a year has no “out” other than an agreement between the 2 parties… otherwise you serve it in full. Which is what you agree to when starting it.
Agreeing to it doesn’t mean I like it…
Trapping people in terrible jobs sucks. Especially when it’s considered the legal standard and your contract has to state it’s at will(which might be illegal in some places)
Such a weird take.
A month is easily survivable, the snowball of Beiing fired on the spot, having no income, not being able to afford your living expenses, debts, homelessness is not.
At will employment might be good for a view niche jobs, for most jobs especially the lower paid, it just gives the employer even more power over their employees.
I’d suggest you take your weird american viewpoint on employment and go away. We like the fact that employees get proper protections against predatory corpos.
A month is easily survivable
Depends on the job/employer.
Furthermore it’s more important when things come up. Say you need to go take care of a relative in an emergency.
Yeah, let’s make all regulations up based on exceptions and edgecases.
If something happens and you need space, most EU countries have leave for that, you can also take vacation days (we also get those by law)… or your employer allows you to go.
Again, strange corpo way of trying to normalize not having proper contracts and labor protections. You have bought in to the propaganda too much.
Probably anti union too, no?
Really? Nobody at TSMC thought to google “biggest mistake companies make when opening US plants”? Because this has all happened before
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)
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.
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.
Probably American Factory from 2019. Definitely a recommended watch for anyone unfamiliar with the topic.
Yep that’s probably the one. Super depressing, especially all the anti-union tactics.
Went back to see the trailer and yeah, that’s the one.
perceived abuses
Way to be passive aggressive, haha. Next they’ll be apologising “we’re sorry you feel that way” :P
Sounds like they need a union
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.
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.
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.
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.
This last job (I’m a contract employee) will be my last in MFG. I was hired long term (2 years) to get a gsk/haleon site to add almost 40% more deliverables. 280 million units a year to 400 million. Reduce waste by 25%, CoA/CoE turn around down to 2 weeks from 6.
The labs, which operate almost entirely as a community (eg no real rigid structure, lots of senior empires) killed it. 7 day turn around which honestly now my mind. Packaging was a struggle once i pointed out that OEE can be improved by scheduling downtime rather than just oopsing it (strictly beancounter bullshit).
Manufacturing… Took my ideas, literally threw them in the trash in front of me and said they have experts from multiple countries, they don’t need my help. Cool, i still get paid so whatever. You wanna see the biggest dumpster fire ever… Laid off about 40% of the mfg work force, rolled out some bullshit trainings about operators and maintenance working to bring equipment “back to new” whatever the duck that means (means maintenance budget is gone) all while investing 0 dollars into repair and maintenance. Gear boxes leaking oil into overflowing catch cans for months. Vacuum traps actually pulling ingredients out of the batches, building more systems upon systems that they can’t validate. Cleans that won’t pass swabs, cleans that aren’t validated, processes that rely 100% on operators to transcribe SCADA data into an electronic batch record system.
Never seen anything like it but i know when a horse is dead and this one was dead before i got there.
As a software engineer, this is exactly how software works.
Everything is just a huge mess bolted and duct taped together, sometimes over decades. And it’s all way too complex to understand and crap like crowdstrike happens.
You can’t rely on anything anymore and I’m pretty sure, our highly interdependent world will come very close to collapse if anything major happens. Covid was a warning shot, but nobody heard it.
It’s the nature of both market economies and planned economies. Strong unions are needed in both.
Reminds me of the Netflix show “American Factory” about a Chinese factory opening in the US.
Quite a fascinating clash of cultures.
Which reminded me of an 80s movie called Gung Ho about a Japanese company that bought an American automobile manufacturer and the ensuing culture clash.
All this has happened before, and all this will happen again.
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.
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…
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.
threats of physical punishment
This can bring people to jail in Germany.
When a company opens a facility in another country, why don’t they just higher local people to be the managers?
Because they don’t know or trust them
