Long Hours, Outdated Software, and Minimal Investment in Employees — Insights from a TSMC U.S. Engineer’s Open Letter

At the end of 2021, an American engineer at TSMC posted a critical review on Glassdoor about the company’s workplace culture after attending training in Taiwan. The post quickly sparked heated discussion among internet users.

In his post, the American engineer stated that during his training in Taiwan, he worked at least 10 hours a day, often up to 12. He also noted that local Taiwanese employees routinely worked more than 12 hours a day. Additionally, he criticized TSMC for disregarding personal freedom, citing strict rules in the employee dormitories, including curfews and restrictions on visitors after a certain hour.

He also criticized TSMC for using outdated internal software and described the company’s e-learning system for employee training as extremely poor. While acknowledging that the manufacturing industry may not have the same urgency as the software sector to improve digital tools, he argued that TSMC should at least provide user interfaces with basic functionality and minimal aesthetic quality. Such improvements, he said, would help employees work more efficiently, save time, and increase productivity. He further noted that TSMC spends excessive time on meetings—often more than three hours a day—and suggested that better software could significantly reduce the need for so many meetings.

He explained that his passion for semiconductors led him to join TSMC, but regrettably, while the company makes significant contributions to the world, it gives very little back to its employees. He criticized the company for allocating only a tiny portion of its spending to workers, with the vast majority going toward equipment maintenance, machine installation, and test wafers. As a result, he suggested that TSMC hire more staff to help distribute the workload so employees can leave work on time and spend time with their families. He emphasized that this should at least be implemented at the Arizona fab—otherwise, how could TSMC compete with nearby Intel for talent?

The criticisms raised by this American TSMC employee were detailed and appeared well-founded. But to be honest, such critiques of TSMC’s management and corporate culture come as no surprise to industry insiders. In fact, what this newly hired engineer described reflects the general perception many have of TSMC—and, more broadly, highlights systemic issues common across Taiwan’s electronics industry.

Strictly speaking, this kind of work culture isn’t unique to Taiwan’s electronics industry—it has long been entrenched across Asian corporations. Some argue that while the U.S. held 37% of global semiconductor manufacturing capacity in the 1990s, that share has dropped to just 11% today, largely because companies in Taiwan and South Korea routinely work over 12 hours a day, giving them a competitive edge. If this engineer had the chance to work at Samsung, he might not have found TSMC unusually inhumane. Or, had he worked in mainland China, he would likely have experienced firsthand how relentless overtime is a norm in many Asian companies.

If Asian companies hadn’t pushed themselves so hard, how could they have pulled ahead of the U.S. by three generations in the wafer foundry industry? How can anyone expect to catch up with world-leading firms by working only eight hours a day and clocking out on time? The rise of Asia’s manufacturing sector is often attributed to the fact that Western workers prefer comfort—they want the feast without stepping into a hot kitchen. In contrast, Asian workers have relied on relentless effort, long hours, and the sacrifice of their “fresh livers” to claim slice after slice of what was once America’s manufacturing pie.

That said, I believe Taiwanese companies investing in manufacturing facilities in the U.S. must adapt to local customs. For example, employee working hours and related management practices should comply with American labor laws and regulatory standards.

The issues raised by this employee clearly need to be addressed. For example, strict dormitory rules and curfews must be revised to align with local cultural norms and expectations. Just as many multinational companies adjust their management styles when operating in Taiwan, TSMC must also adapt its practices when investing overseas—this is a fundamental challenge it must take seriously.

The criticism about poorly designed software and its failure to reduce meeting time is, in my view, quite valid. Some of my friends who work at TSMC agree that this American employee’s comments are not exaggerated. In fact, Taiwanese companies have long lagged behind in software usage and development, and this engineer likely has prior experience at other firms, giving him a sharper perspective on functionality and user interfaces. As for excessive meeting time, that’s hardly unique to TSMC—it’s a common frustration shared by office workers across Taiwan.

I believe TSMC’s leadership should take these comments seriously and not punish the employee simply for speaking out. Instead, such criticism should be embraced as a catalyst for internal improvement.

In fact, this employee is not the only one to have publicly criticized TSMC’s management culture. Back in June 2022, a former process engineer—who claimed to have worked in Phoenix, Arizona for over a year—also shared his views.

He said that if your goal is simply to enhance your résumé, working at TSMC might be a good option. But if you’re someone in the semiconductor industry who values personal growth and professional development, “I don’t think TSMC is the best choice.” He identified what many American employees see as the company’s “three major red flags”: militarized management, a pervasive gossip culture, and limited career advancement.

He gave several concrete examples. For instance, employees often gossiped about personal matters—who was sick, who was dating whom, or who someone’s father was. At the Arizona fab, managers frequently took a top-down approach, with attitudes like “I make the decisions” or “that’s just how it is.” Promotions at the facility were slow, with a manager-to-engineer ratio of about 1 to 30, making advancement highly competitive. On average, it took around five years to move up a level.

For TSMC, the work culture of its manufacturing employees is unlikely to undergo a complete transformation. The elements that drive its success can only evolve gradually and be adjusted incrementally—it’s unrealistic to expect an abrupt shift. Every company has its own corporate culture, and if you can’t understand or embrace it, it’s unlikely you’ll stay long. If your priority is working eight hours a day and spending evenings with your family, then perhaps Intel is the better fit.

This also reminded me of the documentary American Factory, which premiered on Netflix a few years ago. The film chronicles the story of China’s Fuyao Glass investing in a U.S. factory and highlights the differences between Chinese and American manufacturing cultures, the tensions between capital and labor unions, and the disruptive impact of automation on traditional manufacturing.

One scene in the documentary shows managers from the U.S. branch traveling to Fuyao’s headquarters in Fujian, China, for training. They were shocked to witness the militarized management style under which local employees operated. The managers admitted that the difference in work ethic between Chinese and American workers was vast and concluded that such discipline would be nearly impossible to replicate in the U.S.—a reality they lamented as one reason behind the decline of American manufacturing.

However, working hard and putting in long hours isn’t exclusive to Asian manufacturing. The American TSMC employee who voiced those criticisms may not have seen firsthand how startups in Silicon Valley—especially those in the software and internet sectors—also rely on relentless overtime and late nights to achieve their global leadership.

Of course, TSMC is no longer a startup, and its employees don’t approach their jobs the way workers at Silicon Valley startups do. Still, I believe that TSMC’s operations in the U.S. will fully comply with local regulations, and any overtime will be compensated accordingly. Perhaps only those who truly understand and accept this kind of work culture will be willing to become part of TSMC’s American team.

For example, during TSMC’s annual shareholders’ meeting in June 2023, media reports noted that some American employees had complained about overtime and the shift system. In response, Chairman Mark Liu (劉德音) bluntly stated, “If you don’t want to work shifts, then this industry isn’t for you.”

TSMC is a source of pride for Taiwan and one of the most competitive multinational companies representing Taiwanese corporate culture and management on the global stage. In an era shifting from working hard to working smart, TSMC should adopt the mindset of “correct what should be corrected, and improve regardless” in response to any criticism, accelerating its pace of progress. I believe Chairman Mark Liu and CEO C.C. Wei—who are leading TSMC into its next golden decade—would likely agree with this perspective.