Following the steps of Qualcomm, some China-based tablet chipset vendors reportedly have also slashed their 28nm orders at Taiwan Semiconductor Manufacturing Company (TSMC) as they are switching part of their orders to other foundry houses which can offer better foundry pricing, according to industry sources.

　　Rival companies including Globalfoundries and Samsung Electronics both have managed to improve the yield rates of their 28nm process nodes, enabling them to offer better prices to lure clients away from TSMC, notably such as Qualcomm, said the sources.

　　China-based SoC providers Allwinner Technology and Rockchip Electronics are reducing their 28nm process orders for the third quarter, while MediaTek is expected to cut its 28nm orders by 10-20% for the fourth quarter, indicated the sources.

　　Furthermore, Taiwan-based Realtek Semiconductor is reportedly also reducing its 28nm orders for its Wi-Fi chip, while China-based Spreadtrum Communications is holding back its orders for 40nm process, added the sources.

　　Affected by decreasing orders, TSMC's 28nm lines are currently operating at 80% of their capacity, said the sources.

　　TSMC may manage to reach the low-end target of 3-5% growth set for the third quarter of 2013, or, in a worse-case scenario, could be forced to revise downward its guidance to zero growth for the quarter, estimated the sources.

　　In response to market speculations, TSMC said its operations for the third quarter remain unchanged.