TSMC said on Monday evening that “continuing weakness in global economic conditions” was leading to lower demand, and revenues in the past three months of this year are now expected to be between NT$63bn ($1.87bn) and NT$65bn, compared with a previous forecast of between NT$69bn and NT$71bn. The operating profit margin is also expected to fall by four percentage points to 17-19 per cent.

The announcement spells further trouble for the global IT industry next year. Semiconductors, TSMC's main product, are at the beginning of the production chain for many electronic products, from computers to mobile phones to game consoles.

With TSMC commanding more than half of the world's contract chip manufacturing market, the company's performance is seen as a bellwether for the technology industry.