TSMC had planned to spend $11 billion on equipment but has now cut that figure to $8 billion, with its net profit falling by 1.3 percent.
The company said in a financial statement that while revenues in its third quarter were essentially flat compared to the previous quarter, revenues were 4.3 percent down compared to the same quarter in 2015.
Net profit margins amounted to 35.4 percent for the quarter.
Twenty one percent of wafer revenues are now drawn from shipments of 16/20 nanometre silicon wafers, while 28 nanometre technology amounted to 26 percent of its total revenues.
Earlier this week, chip giant Intel warned that its data centre business for server chips wasn’t as buoyant as Wall Street had expected.