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.
…and …
If TSMC is going to succeed with its Arizona chip-making venture, it needs to come to terms with the fact that it’s not the only game in town there. 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.
So TSMC wants to abuse workers …and there’s another local alternative employer in the exact same specialty field that won’t do that.
Basically the “roadmap to success” used in other countries failed in Germany/Europe mostly because that “success” was only achievable through “human rights abuses” and “violating labor laws” that aren’t troublesome in parts of the world where labour rights are neutered at every opportunity, and large portions of the population people are too impoverished to afford necessities elsewhere
They failed through a combination of exactly that plus the wrongfully held opinion that their usual plan of selling cheaper than other supermarkets and thereby pushing them out of the market would work the same as in other countries.
Doesn’t really work if the other supermarkets are already working with very thin margins. They burnt through a little over 3 billion € by the time they left the German market.
This is why Foxconn did not go ahead with their expansion plans in India too. They are so used to the Chinese way, I guess they experienced a Pikachu moment when Indian workers started removing their aprons the moment it hit 5’o clock.
India may be a poor country, but the average laborer (skilledd or unskilled) is much more aware of his rights than a worker from PRC.
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This seems like the critical parts:
…and …
So TSMC wants to abuse workers …and there’s another local alternative employer in the exact same specialty field that won’t do that.
Isn’t this how Walmart failed in Germany?
Basically the “roadmap to success” used in other countries failed in Germany/Europe mostly because that “success” was only achievable through “human rights abuses” and “violating labor laws” that aren’t troublesome in parts of the world where labour rights are neutered at every opportunity, and large portions of the population people are too impoverished to afford necessities elsewhere
They failed through a combination of exactly that plus the wrongfully held opinion that their usual plan of selling cheaper than other supermarkets and thereby pushing them out of the market would work the same as in other countries.
Doesn’t really work if the other supermarkets are already working with very thin margins. They burnt through a little over 3 billion € by the time they left the German market.
This is why Foxconn did not go ahead with their expansion plans in India too. They are so used to the Chinese way, I guess they experienced a Pikachu moment when Indian workers started removing their aprons the moment it hit 5’o clock.
India may be a poor country, but the average laborer (skilledd or unskilled) is much more aware of his rights than a worker from PRC.
I find it hard to believe this wasn’t factored in already. I guess common C suite arrogance knows no geographic boudaries?
It’s a movie called Gung Ho filmed in 1986 staring Michael Keaton https://youtu.be/roN6qm1ItYg?si=nssHIncHW265vufd
There’s a whole documentary on this. Check out American Factory (2019). It goes over the same issues outlined here.