It is the third time the foundry has lowered its chip market growth estimate for this year and the company is blaming weaknesses in the smartphone market and the global economy.

This meant lots of excess inventory in the supply chain since the beginning of the year.

TSMC in July cut its outlook for the 2015 global semiconductor growth to three per cent from the four per cent estimated in April. For the foundry sector, TSMC previously downgraded its growth forecast from ten per cent to six percent.

The company has adjusted its investment target down for 2015 to $8 billion from the previously-set US$10.5-11 billion. This is a 20 per cent. The company promised to invest more next year but it is the lowest the company has spent on capital expansion since 2012 when it spent $8.32 billion.

TSMC reported net profits for the third quarter of 2015 decreased 5.1 per cent sequentially and 1.3 per cent from a year earlier. Revenues increased 3.4 per cent on quarter and 1.7 per cent on year.

TSMC expects its revenues to drop 4-5 per cent in the fourth quarter. For all of 2015, TSMC's revenues will grow 10-11 per cent, the foundry said.