Meanwhile, analysts are worried that the worst is yet to come thanks to slumping phone demand and worries over trade tensions that could undermine global technology demand.

TSMC, whose clients include iPhone maker Apple, said that July-September profits were $2.9 billion. Down on what analysts expected, particularly with the release of new iPhones.

It should have been a good time for TSMC because rival GlobalFoundries announced that it would not compete in the latest generation of chip-making technology. ASML which supplies TSMC posted better-than-expected third quarter results, and it was thought that this would herald a good result for TSMC

The intensifying trade spat between the United States, and China could also be a near term risk for TSMC.

KGI analyst Benjamin Chiang said in a report before the results in early October that near term demand for products such as servers will be affected by the trade spat, but TSMC’s leading position in foundries could help it partially offset that.