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

The United States will award Taiwanese chip giant TSMC up to $6.6 billion in direct funding to help build several plants on US soil, officials said Friday, finalising the deal before a new administration enters the White House.

TSMC: Initially filed in August, the suit was refiled last week as a class action case with 13 plaintiffs named.

TSMC a few weeks ago notified the U.S. Commerce Department that one of its chips had been found in a Huawei AI processor.

The US government will provide up to $6.6 billion in funding to Taiwan's TSMC for the construction of three chip plants in Arizona. This initiative, part of the CHIPS Act, aims to boost US semiconductor production and create thousands of jobs.

TSMC faces a lawsuit for alleged discrimination against American employees at its Arizona facility, favoring Taiwanese staff.

TSMC’s Arizona plants will enable Apple chips for older devices to be made in the US for the first time, but things haven’t exactly been going to plan. The latest development is that a group of the company’s US workers have filed a lawsuit accusing the Taiwanese company of ‘anti-American discrimination’