TSMC trims 2015 outlook

The foundry has excess inventory but will maintain its capex target.

Taiwan Semiconductor Manufacturing Co., the world's largest chip foundry, said the outlook for the rest of this year is worse than it previously anticipated.

"Inventory is being depleted more slowly than we expected," said TSMC chairman Morris Chang, making a rare appearance at the company's announcement of results for 2Q15. "This is not a good omen for the fourth quarter. We do believe that by then, inventory will be back to the seasonal level."

Demand for TSMC's communication chips that go into the iPhone and other handsets—which account for the bulk of its overall revenue—will decline in 3Q15. Requirement in the computer, consumer electronics and industrial segments will rise during the same period, according to TSMC. For the time being, the company will maintain its capital expenditure budget for this year, which is between $10.5 billion and $11 billion.

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