Foundry-for-hire TSMC is reportedly experiencing a slowdown in orders for Q3 and Q4. Customers are apparently concerned about building too much inventory, which is understandable given the state of the economy in major western markets.

Digitimes claims many clients have already cut back their Q3 orders and the outlook for Q4 remains uncertain. However, the drop does not apply to 28nm products and demand for 28nm parts still outstrips supply. The majority of 28nm production is taken up by Qualcomm and Nvidia, or Krait and Kepler chips to be exact.

In related news TSMC continues churning out chips with no disruptions even as Taiwan braces for typhoon Talim. If Facebook posts from our Taiwanese friends are anything to go by, it is already looking pretty messy. The full force of the typhoon is expected to hit Taipei late Wednesday.

Oh well, at least it did not make landfall during Computex.