Company co-CEO Mark Liu said that while the fourth quarter could be a bit rough as customers start their inventory adjustments, TSMC's sales for the quarter will still outperform those for the third quarter.

Talking to Digitimes, Lui said that smartphone demand was affected negatively by macroeconomic factors in the first half of 2016. But apparently smartphone chip clients are ordering again in the second half of the year.

TSMC previously estimated its 2016 revenues would grow five to 10 percent. The foundry expects to meet the high end of the growth guidance, Liu said. In his speech at the CEO Forum of SEMICON Taiwan 2016. Liu claimed that the foundry industry growth is being driven by the markets for smartphones, HPC, automotive and IoT.

Apps like Pokemon G will require more silicon chips used in mobile devices that will be another growth driver in the future, Liu said.