News TSMC's labor practices draw serious concern in Arizona — the company's new chip plant allegedly struck by worker abuses

hannibal

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And then we wonder why work places goes to East...
It is compete or die... And competition is lost in most places in the Western world.
Not sure if there is any good solution to this problem. A company that takes most out of its workers... wins the price competition. Unless people decide to pay more, for less good products that are made in the west.
Or the laws protecting the workers has to be so strict that Eastern companies are not interested in investing in western countries...
First it was low tech industry... not it is high tech also... USA car manufacturers are also losing the race... Soon no workplaces outside cafe shops and crockery markets.
 
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TechLurker

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I'm of 2 minds on this.

On one hand, Asian work ethic IS very strict, head to the grinder, and somewhat rigid, but it gets the job done efficiently and on-time with few defects. Foreign workers should have expected this going in, knowing it's going to be run Asian style instead of Local style, especially for a high profile Asian company looking to quickly ramp up after delays.

On the other, America does have its own unique work ethic, and depending on who you ask, is either seen as better or worse when it comes to the end product. And given that the facilities will be in the US, TSMC should have had some leeway to accept lower performance/output from the US side both due to cultural differences and the usual teething issues with new staffing.

It seems that TSMC is already predicting lower output, hence their upcoming premiums on anything made not in Taiwan effectively limiting said facilities to only producing government chips (which was the main point anyway).

As well, based on a few samles of the complaints from both sides, the Taiwanese employees complain the Americans are acting entitled and complaining too much about working hard or wanting a lower bar of standards to be held against, while the Americans are complaining that TSMC is basically too strict, borderline abusive, and demanding too much for 12 hours of focused work.

All that said, I'm reminded again of why there aren't that many companies that can cross the East/West culture/work gap (heck, it's hard enough to cross the American/European culture/work gap), and this wouldn't be the first time this happened either. It took Sony decades to make leeway for Western culture and they had their own fair share of internal issues, but they did eventually adapt and get a Westerner to become CEO for their Playstation division.
 

35below0

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The inability to prioritize jobs and instead expect furious intensity on every task, no matter how large, was decried by Americans as poor management, which leads to inefficiency. But these intense expectations are a feature of company culture according to its founder, Morris Chang.
That's one way of doing it. Our western parents and grandparents went through excesses of capitalism. That's why the work day was shortened, people were not worn out and broken down by the age of 25, and worker unions formed to put employer power under control.

Morris Chang might have built up a huge company but he still has a lot to learn and probably to answer for.

Chang was quoted by Rest of World as saying, "If [a machine] breaks down at one in the morning, in the U.S., it will be fixed in the next morning. But in Taiwan, it will be fixed at 2 am."
It will be fixed by 2 am anywhere. Anywhere the engineer is paid to be on call. It has nothing to do with company "culture", only with the work agreement.


Of course, there are lazy good for nothings coasting and doing as little as possible in every company. Instilling a "culture" of rewarding hard work and punishing laziness is not itself wrong.

Building a massive complex and hiring engineers only to later find out the work conditions are unacceptable is a slap in your own face Mr. Chang. It's YOUR job to see it coming and fix it before it happens.
Responsibility must be taken up at all levels.

It really irks me that people in positions of authority resort to blaming their underlings when those underlings, no matter how clumsy, lazy or left handed are their own responsibility.
 
And given that the facilities will be in the US, TSMC should have had some leeway to accept lower performance/output from the US side both due to cultural differences and the usual teething issues with new staffing.
not really.
most of the $ is out of their pocket.
If they accept less than expected results they lose $ every day.
Theres no benefit to of even making the fab at that point.

If someone got a job at an authentic Chinese food place and didnt know how to use a wok...are the bosses suppsoed to accept that? no as again they are a business & it harms them.


While it does suck (on both sides) US will have to accept the asian culture for the job and if they cant don't apply. (simple even if not the ideal outcome)
 

bluvg

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This type of work environment wasn't uncommon in the West during the Industrial Revolution also. And it's quite different when a company plays a big role in the existential threat of an entire country. Certainly culture plays a role, but there are plenty of other factors at play.

At the end of the day, though, what are TSMC's results vs. Intel, Samsung, etc.? There is little connection between the consumer and the unseen plight of a product's builders. If Intel achieves their goal of being back on top of the manufacturing heap without having to treat workers this way, it will undermine Chang's argument and management style.
 

King_V

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If your company cannot succeed without abusing workers, then your management is poor.

If your company cannot prioritize tasks, making EVERYTHING as "top priority" and leaving it to the workers to make "do everything right now" happen, then your management is poor.

It appears that TSMC's success is based heavily on operating in a nation where worker abuse is acceptable. Making a fortune by running workers ragged is easy. Anyone can do that.

TSMC thinks American worker protections are too generous? They'd never survive Western Europe!
 

DavidLejdar

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At my first job after school, 14-hours shifts were common, except on Fridays, Saturdays and Sundays, when it was around 16 hours, and for very little money (in Europe). In that context, "12-hour workdays", sounds progressive. :) And currently having 9-hour workdays (including lunch), but considering to find a time-part job in addition, just to earn a bit more - which would add 10-15 hours to weekly worktime.

And why don't I apply at TSMC then? Very simple really. The instilled work culture "work until you drop, possibly even at quite a young age, so that the owner can purchase several luxury cars and stuff", meant that there wasn't time for anything else, such as learning to read, to be able to decipher road signs to find my way to TSMC. I would have work experience as foreman though, which it sounds that TSMC could do with to have that position in the middle, and someone qualified for exactly that.
 
Apr 24, 2024
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The total salary compensation for their engineers isn't great, which is another reason why retention is terrible. Who wants to put up with an abusive work environment when you can go somewhere else and get paid the same or more. Only a matter of time before we see them getting investigated and fined for violations. Mr Chang's ego and bad habits have been able to flourish in a small country where he lines the pockets of people in his government.
 
While it does suck (on both sides) US will have to accept the asian culture for the job and if they cant don't apply. (simple even if not the ideal outcome)
Until Intel's non-technical management opted to not spend the money on EUV machines they were completely dominating the fabrication market. What's happening with TSMC has absolutely nothing to do with the end product but rather a toxic workplace environment fostered in a country without worker protections.

Nobody in the US is going to work for TSMC when there are other companies paying the same, or more, without the toxic management and culture. This is probably why TSMC is having problems getting enough engineers in AZ and Intel isn't. TSMC will either change their ways or be relegated to not having leading edge in the US and it seems like they've chosen the latter.
 
Feb 7, 2024
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The article did not mention that there is a skill issue. The job can be done just not at the same pace as in Taiwan. If everyone needs to works 12 hours per day then they need 1.5x the workers to retain the same performance. And this is a manufacturing sector. If they work 24/7 then they need 3 shifts 8 hours each. They cannot expect to hire 2 shift of workers and just expect them to constantly work 12 hour shifts.
12 hour shifts are permissible but then they don't work 5 days a week.
And the mindset of "profit at all cost (meaning at the expense of workers)" has finally caught up with China. A lot of businesses are leaving China for Vietnam, Indonesia in search of cheaper labor. At some point these places will simply run out.
This is the same discussion as "why the iPhone cannot be made in USA" all over again.
 
Apr 25, 2024
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At the risk of sounding "anti-American", I see two distinct failures in American culture with regards to dealing with issues like this. The first is that we always look at everything from the perspective of "if it isn't American, it's inferior". We always assume the "American way" or "What I think" is superior and anyone who disagrees or has a different opinion is inferior. Which is a segue into the other failure of American culture. We can't seem to accept things are simply different. We have to categorize it as better or worse, it just can't be different.
Take something like ketchup on a Chicago hot dog. Any Chicagoan would drive daggers into you if you put ketchup on a hot dog. We simply can't accept different for what it is, it's just different. It can't be simply that, it has to be "superior" (of what Americans think of ourselves) or "inferior" (of what Americans think of the rest of the world).

Taiwan, China, Japan, etc. they just do things differently. This isn't to say better or worse, it's just different. They go to school differently, college differently, and the work environment is different. I don't know why we can't accept that.

Morris Chang, when talking to Nancy Pelosi in the early days of negotiating the TSMC factory build in AZ warned her of all these things. It's not like our politicians (and if the public were paying attention at the time) weren't told of the culture clash coming. Of course Nancy's answer was "we're American, we're better, so it's not a problem to handle this".

There was an old Michael Keaton movie (from the 80's I think) which came out because of the trade war between the US and Japan. What we're seeing here is simply a repeat of history.

Many of the things we're doing to China today were things we did to Japan in the 80's for exactly the same thing. Japan's manufacturing was beating out American manufacturing.

The main difference between Japan and China is that Japan eventually capitulated leading to things like the Plaza Accord and eventually tanking the Japan economy for over 20 years.

China isn't capitulating so we're going head on with sanctions, political agendas, military chest thumping etc.

It's also why Taiwan has become such a hot button. But the problem will be that the factory in AZ will never be able produce chips cheaper than the Taiwan (and probably other factories TSMC owns) just due to how we do business in America. And don't get me started on why it was idiotic to build in AZ given the amount of water a wafer fab uses, the amount of natural resources is uses, not to mention the environmental impact of all the chemicals involved.

So, just producing the chips with American talent will be challenging enough, but add on all the other things (water, power, environmental impact) and this will be a very costly venture.
 
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King_V

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Morris Chang, when talking to Nancy Pelosi in the early days of negotiating the TSMC factory build in AZ warned her of all these things. It's not like our politicians (and if the public were paying attention at the time) weren't told of the culture clash coming. Of course Nancy's answer was "we're American, we're better, so it's not a problem to handle this".
THIS is what you joined the forum to post. So, Chang WARNED Pelosi of the culture clash?

Assuming that's accurate, Chang was in no position to do so. Chang wanted American CHIPS funding, and Chang wanted to have a manufacturing facility in the United States. Chang is in no position to demand any sort of exemption from American labor laws, regulations, etc. You're asserting that he has the right to gain the perks of building here, but should be exempt from any of the responsibilities that come with doing so.

And you're using a movie, Gung Ho, as your point of reference? While it did deal with some serious issues, that movie is comedy. But, in contradiction to the point you're trying to make:
Just before the final inspection, Hunt and the workers line up a number of incomplete cars in hopes of fooling the executives. The ruse fails when the car that Hunt had supposedly bought for himself falls apart when he attempts to drive it away. The strict CEO is nonetheless impressed by the workers' performance and declares the goal met, calling them a "Good team," to which Kazuhiro replies "Good men."

As the end credits roll, the workers and management have compromised, with the latter agreeing to partially ease up on their requirements and pay the employees better while the workers agree to be more cooperative, such as participating in the morning calisthenics, which are now made more enjoyable with the addition of aerobics class-style American rock music.

So, this was most certainly NOT a case of "our way or the highway."
 
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THIS is what you joined the forum to post. So, Chang WARNED Pelosi of the culture clash?

Assuming that's accurate, Chang was in no position to do so. Chang wanted American CHIPS funding, and Chang wanted to have a manufacturing facility in the United States. Chang is in no position to demand any sort of exemption from American labor laws, regulations, etc. You're asserting that he has the right to gain the perks of building here, but should be exempt from any of the responsibilities that come with doing so.

And you're using a movie, Gung Ho, as your point of reference? While it did deal with some serious issues, that movie is comedy. But, in contradiction to the point you're trying to make:


So, this was most certainly NOT a case of "our way or the highway."
My point to the "Gung Ho" movie was simply that it was a movie meant to emphasize the culture clash between Japan and America. This is not a contradiction to my point, which is that the Arizona TSMC plant is experiencing a culture clash. I think you are incorrect. It was not Morris Chang who reached out. It is true they insisted on subsidies, but it is us, the Americans, who are trying to get TSMC to America, not the other way around. TSMC doesn't need us, but we need them. That's why we offer subsidies. Doesn't it seem weird to you that TSMC would come to America begging us to build a factory here and then say "oh, by the way, only with tens of billions of dollars of subsidies"?
The tone of your response actually reinforces the other main point I wanted to make, which is "If it's American it's superior" and if it isn't American, it's inferior.
Most of your assertions are patently false. For example, there is no demand from TSMC to be exempt from labor laws.
You may not realize this, but if you are a salaried employee, there is nothing in the labor laws that prevent an employer from requiring you to work a 12 hour shift. If it were true, then 100% of every Silicon Valley employers should be cited and fined. Every Silicon Valley company I worked for required me to work 12, sometimes 24 hours. As a salaried employee, I was never paid any additional wage.
I won't go point to point on all of your comments because either you misinterpreted what I meant, or are simply wrong.
But I still stand by my main point. America would be better off if we would learn to be more tolerant (not to mention cooperative) of other cultures and understand that different is just different, and not "we're better than they are".
If anything, it's America that seems to be the country that tries to change every other country/culture, all the while blaming for trying to do that same thing.
 
But I still stand by my main point. America would be better off if we would learn to be more tolerant (not to mention cooperative) of other cultures and understand that different is just different, and not "we're better than they are".
In a general sense I agree with you, but with regards to TSMC and what they're trying to do not at all. They're coming into an established industry and want to do things they way they've done in their own country. It would be stupid for employees to accept what amounts to as a toxic work environment because "that's how they do it elsewhere".
You may not realize this, but if you are a salaried employee, there is nothing in the labor laws that prevent an employer from requiring you to work a 12 hour shift. If it were true, then 100% of every Silicon Valley employers should be cited and fined. Every Silicon Valley company I worked for required me to work 12, sometimes 24 hours. As a salaried employee, I was never paid any additional wage.
This is worker abuse which 50-60 years ago probably would have been killed by congress or unionization. Tech companies really pioneered pushing employees into salaried positions so they could work them without overtime. A distinct lack of union protections and governmental disfunction made this pretty easy.
It was not Morris Chang who reached out. It is true they insisted on subsidies, but it is us, the Americans, who are trying to get TSMC to America, not the other way around. TSMC doesn't need us, but we need them. That's why we offer subsidies. Doesn't it seem weird to you that TSMC would come to America begging us to build a factory here and then say "oh, by the way, only with tens of billions of dollars of subsidies"?
TSMC was already building a fab in AZ before the CHIPS act was a thing. TSMC, like every other foundry, put their hands out when the possibility of federal money became a thing. The US decided to finally subsidize the industry because it's the only way to really onshore quickly. The US doesn't particularly need TSMC beyond more capacity is better. If fab expansion keeps up and they don't change their ways TSMC probably won't be able to get enough engineers to run their US fabs. Employees will likely have power since projections indicate there won't be enough engineers for all the opening fabs so they'll just go to the better employer.
 
Apr 25, 2024
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In a general sense I agree with you, but with regards to TSMC and what they're trying to do not at all. They're coming into an established industry and want to do things they way they've done in their own country. It would be stupid for employees to accept what amounts to as a toxic work environment because "that's how they do it elsewhere".

This is worker abuse which 50-60 years ago probably would have been killed by congress or unionization. Tech companies really pioneered pushing employees into salaried positions so they could work them without overtime. A distinct lack of union protections and governmental disfunction made this pretty easy.

TSMC was already building a fab in AZ before the CHIPS act was a thing. TSMC, like every other foundry, put their hands out when the possibility of federal money became a thing. The US decided to finally subsidize the industry because it's the only way to really onshore quickly. The US doesn't particularly need TSMC beyond more capacity is better. If fab expansion keeps up and they don't change their ways TSMC probably won't be able to get enough engineers to run their US fabs. Employees will likely have power since projections indicate there won't be enough engineers for all the opening fabs so they'll just go to the better employer.
I agree that no one is forced to work for TSMC. If TSMC has work conditions, which are legal, it's up to us to determine whether or not we should work for them.

However, I disagree that TSMC had the fab being built under the Chips Act was built before the Chips Act.

They didn't break ground until just a couple of years ago.

I also disagree that we don't need TSMC.

The position you're taking is the "America is the best" and that attitude leads to us being complacent and that's why we're losing our lead to Asia. But it's also our disrespect for other cultures that leads to discrimination and bigotry. You can rationalize all you want, but it doesn't change reality.
 
However, I disagree that TSMC had the fab being built under the Chips Act was built before the Chips Act.

They didn't break ground until just a couple of years ago.
Uh... you can disagree all you want, but facts say you're just wrong: https://www.anandtech.com/show/15803/tsmc-build-5nm-fab-in-arizona-for-2024
I also disagree that we don't need TSMC.

The position you're taking is the "America is the best" and that attitude leads to us being complacent and that's why we're losing our lead to Asia. But it's also our disrespect for other cultures that leads to discrimination and bigotry. You can rationalize all you want, but it doesn't change reality.
No the position I'm taking is that there are a lot of foundries with fabs in the US. The other two which are pushing leading edge already have fabs active and are expanding them. Would having more TSMC fabs be better than not and a good thing? absolutely, but is it somehow necessary? no.
 
Apr 25, 2024
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Unfortunately for us, our media, it's not the most trustworthy of sources. My biggest complaint about US media is that they to leave out information (or worse, put in wrong information) so that you have to go to multiple sources to get the whole picture.

But that is irrelevant to my point which is we have an American arrogance that believes we are always right and everyone should do things the way we do. It's ingrained in our culture. It lead to colonialism, bigotry, and so on.

It also leads us to tell other people how they should act. As I said, if we don't like the way TSMC does business, don't work for them. But if they are operating legally, then change the law.

Americans have this habit of being judge jury and executioner, as if they have a divine right (Manifest Destiny? Colonialism?) to dictate pretty much everywhere.

We don't have the fabs nor the technology TSMC has, nor have we spent anywhere near what they do on R&D. And we want it. As I said, we need them more than they need us. We wouldn't be subsidizing then otherwise, unless you're among the Americans who actually believe we spend what we spend on foreign policy out of the goodness of our hearts?

Then we're in the realm of the pilgrims and Native Americans really celebrated Thanksgiving.

We're also one of the most hypocritical of countries, as there is nothing we haven't done that we have sanctioned other countries for doing.
 

King_V

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Nobody here is taking some sort of "America is the best" view that you're accusing us of. I can't speak for anyone else, but to accuse me of such a viewpoint is absurd to the point of insanity.

You're the one who said that Morris Chang warned Nancy Pelosi. Would you care to be specific on the wording of this warning, then? Maybe provide a link and quote the exact part you're referring to?

Because you're coming off an awful lot like you're insisting that American workers had better get used to a "race to the bottom" for working conditions. It comes off like you're claiming that the only way America can be competitive is if we permit American workers to be abused in a way that's permitted in Taiwan. And, you come off like you're in favor of the idea.

So, perhaps, instead of just throwing the around the accusation that everyone who disagrees with you is doing so from an "America is the best" point if view, you'd be better served by being clearer in what you're saying, and citing sources.
 
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scopey86

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Unfortunately for us, our media, it's not the most trustworthy of sources. My biggest complaint about US media is that they to leave out information (or worse, put in wrong information) so that you have to go to multiple sources to get the whole picture.

But that is irrelevant to my point which is we have an American arrogance that believes we are always right and everyone should do things the way we do. It's ingrained in our culture. It lead to colonialism, bigotry, and so on.

It also leads us to tell other people how they should act. As I said, if we don't like the way TSMC does business, don't work for them. But if they are operating legally, then change the law.

Americans have this habit of being judge jury and executioner, as if they have a divine right (Manifest Destiny? Colonialism?) to dictate pretty much everywhere.

We don't have the fabs nor the technology TSMC has, nor have we spent anywhere near what they do on R&D. And we want it. As I said, we need them more than they need us. We wouldn't be subsidizing then otherwise, unless you're among the Americans who actually believe we spend what we spend on foreign policy out of the goodness of our hearts?

Then we're in the realm of the pilgrims and Native Americans really celebrated Thanksgiving.

We're also one of the most hypocritical of countries, as there is nothing we haven't done that we have sanctioned other countries for doing.
I can't help but feel like you're just saying these to rile people up, pretty sure you are, but in case you aren't let's break down your statements.

"American arrogance believes we are always right and everyone should do things the way we do"

I didn't realize being treated with respect and dignity was an American only cultural ideal. It's weird then how not only in North America, but most of Europe, parts of Asia (South Korea, Japan), and parts of the Middle East that also seems to prevail. Before you counter with "because America has influenced them", my point here is pretty simple: It's not an American ideal, it's a global ethical ideal. No one wants to be treated like crap. Don't make that out into some East vs West debate.

"If we don't like the way TSMC does business, don't work for them"

Sure, on the other hand, if TSMC wants to set up a fab in the United States, and wants access to funding, they HAVE to abide by the regulations in the United States. Such as complying with Workplace Safety and Health as defined by OSHA...but whoops.

"We don't have the fabs nor the technology TSMC has, nor have we spent anywhere near what they do on R&D"

Confusing and misinformed statement. If you mean the manufacturing technology, the United States has it, South Korea has it, and Ireland has it off the top of my head. If you're talking about IP, yeah, then TSMC has their own IP. As for R&D budget, that's a straight lie. Just to paint a picture, let's go straight to the source on it and look at financial statements.
  • Here is TSMC's financial statements. For 2023, their full year R&D was 182bn TWD, which is approximately $5.6bn USD.
  • Here is Intel's financial statements. For 2023, their full year R&D was $16 bn, nearly three times higher.
The reality is TSMC got to where they are because:
  • Intel refused for wayy too long to get into Foundry and was mismanaged by non-technical leadership (they have only themselves to blame)
  • They've received massive amounts of subsidies from governments all over the world including the US, China, Japan, and Taiwan itself
On a personal level, there's been more than a few posts online from people that either have or are working for TSMC and they all seem to read the same. Here's a great example. Yeah, those concerns definitely sound like just whiny Americans, and not just expecting a bare minimum of training, preparation and decency.
 
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Nobody here is taking some sort of "America is the best" view that you're accusing us of. I can't speak for anyone else, but to accuse me of such a viewpoint is absurd to the point of insanity.

You're the one who said that Morris Chang warned Nancy Pelosi. Would you care to be specific on the wording of this warning, then? Maybe provide a link and quote the exact part you're referring to?

Because you're coming off an awful lot like you're insisting that American workers had better get used to a "race to the bottom" for working conditions. It comes off like you're claiming that the only way America can be competitive is if we permit American workers to be abused in a way that's permitted in Taiwan. And, you come off like you're in favor of the idea.

So, perhaps, instead of just throwing the around the accusation that everyone who disagrees with you is doing so from an "America is the best" point if view, you'd be better served by being clearer in what you're saying, and citing sources.
https://www.theguardian.com/business/2023/aug/28/phoenix-microchip-plant-biden-union-tsmc

https://www.taiwannews.com.tw/news/4810589
 

35below0

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Are you saying TSMC wanted the AZ project to fail? To force the US to rely on Taiwan? So Taiwan would continue to enjoy US military protection?
Or are you saying that Chang told or tried to tell US officials that the only way to build semiconductors on US soil is to tear down worker protections, safety regulations and anti-trust laws?

Condensing such huge issues into small enough pieces is... well, not stupid itself but it's not reliable.
Nor is anyone in the US administration or government THAT stupid or blind.

There is nothing in the two articles you linked that is especially enlightening.

If you want to roll higher than a natural 0 on your Knowledge (what the hell you're talking about) check when discussing these matters, try reading the Road to serfdom instead of trying to convince everybody that you already know everything.
 

King_V

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There is nothing in the two articles you linked that is especially enlightening.
I'd go so far as to say that the links, if anything, seem to argue against the point @soclibfiscon is trying to make.



I can't help but feel like you're just saying these to rile people up, pretty sure you are, but in case you aren't let's break down your statements.
I'm very strongly getting the same impression.
 
Apr 29, 2024
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When East meets West ideas and customs collide.
I really think that TSMC really didn't think it through when deciding to expand to the US. TSMC already knew about America employees work ethic and what we expect as an employee.
Asian companies are known for abusive treatment of their employees. Their employees will kill themselves physically overworking themselves into the ground.
Asians are known for their hard work, dedication, and sacrifices they will give to their work. Americans do not tolerate abusive companies. Constantly threatened, spoken down to, verbally demeaning in front of other can only go so far. I can see someone going postal, not to that extent, of punching someone out.
Asians say, what can I do for the company, Americans say what can the company do for me.
I think one issue not discussed is the engineers they hired from the US expect certain things. Quality of life is a key part of our lives. It appears that Asians really do not have what we call quality of life.
One problem was the interview process with Americans. Engineers failed to ask the right questions or TSMC painted a rose garden.
People interviewing need to ask expectations, work schedules, quality of life with workplace balance. They should of done research on the company.
There is a reason why TSMC is importing their own engineers. They will do anything for the company.
I thought about TSMC, but the 50 mile drive put a hamper on it.