Vice chairman of TSMC, F.C. Tseng, said Tuesday that the semiconductor market will not contract by 30 percent as previously expected, and that the chipmaker is now expeting a 20 percent decline in the global market.

Healthy demand in China's white-box handset market and Chinese government stimulus programs are seemingly helping the recovery. Earlier this year, TSMC CEO Rick Tsai said the global semi market would contract by 30 percent.

TSMC also points out strong demand in China is helping Korean chipmakers as well.

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