Good news for the stability of the chip market is that the leading foundry, TSMC, reckons Q3 sales will be better than Q2 and that the semiconductor market will grow 5 per cent this year.

TSMC's CFO, Lora Ho, says she expects the company's margins to remain stable at around the same level as Q2.

The Q2 figures will be announced later this month, but Q2 gross margin is expected to be slightly better than previously forecast at between 43 and 45 per cent, against Q1's 43.7 per cent, with the quarterly operating profit margin at 32-34 per cent, compared with Q1's 33.3 per cent.

TSMC has indicated that Q2 sales will be about the same as in Q1 at Taiwan $87.5bn (US$$2.9bn), and that margins could be a bit better than previously forecast.

The remarks of Ho will give confidence to the semiconductor industry which has, so far, remained relatively unaffected by the woes of the financial markets.

TSMC has caused some alarm in the semiconductor industry by cutting back capex in pursuit, it is assumed, of higher prices per wafer.

With all its customers also trying to improve gross margins, at the behest of Wall Street analysts, this aspiration by TSMC is making a lot of customers nervous.

See also: Mannerisms, the blog of David Manners. Updated twice daily, it's the distinctive, entertaining, authoritative and never dull commentary on the semiconductor industry, from someone who knows. Sign up for the Mannerisms eNewsletter.