Taiwan Semiconductor Manufacturing Company (TSMC) has cut its 2015 outlook for the global semiconductor industry to zero growth. It is the third time the foundry has lowered its chip market growth estimate for this year.

TSMC also lowered its 2015 foundry growth forecast to 5% from 6%. An unexpected slowdown in China's smartphone market and weakness in the global economy led to excess inventory in the supply chain since the first quarter, TSMC said.

TSMC in July cut its outlook for the 2015 global semiconductor growth to 3% from the 4% estimated in April. For the foundry sector, TSMC previously downgraded its growth forecast from 10% to 6%.

The supply chain days-of-inventory (DOI) was about 10 days above usual seasonal levels as of the end of the third quarter, TSMC disclosed. DOI is expected to approach the seasonal norm in the fourth quarter, TSMC said.

In addition, TSMC has adjusted downward its capex target for 2015 to US$8 billion from the previously-set US$10.5-11 billion - a more than 20% cut. Capex for 2016 will be higher than 2015 levels, TSMC added.

TSMC's 2015 capex could be the lowest since 2012 when it spent US$8.32 billion.

TSMC reported net profits for the third quarter of 2015 decreased 5.1% sequentially and 1.3% from a year earlier to NT$75.33 billion, or NT$2.91 a share, while revenues increased 3.4% on quarter and 1.7% on year to NT$212.51 billion.

TSMC expects its revenues to drop 4-5% sequentially to between NT$210 billion and NT$204 billion in the fourth quarter. For all of 2015, TSMC's revenues will grow 10-11%, the foundry noted.