TAIPEI, Taiwan (AFP) — Taiwan's TSMC recently said it planned to slash expenditure in the latest sign from a major global chipmaker that they are expecting the global downturn to deepen.

TSMC operates the world's largest silicon wafer factories and produces some of the most advanced microchips used in everything from smartphones and cars to missiles.

As part of its third-quarter results release the firm revealed it plans to spend around $36 billion in 2022 on capital equipment, 10 percent below its previous target.

The global semiconductor industry has been upended both by an ongoing economic slowdown dampening demand and renewed trade frictions between the United States and China.

Billions have been wiped from companies' valuations worldwide in recent days after Washington announced new measures last week to limit China's access to high-end semiconductors with military uses.

The Department of Commerce said the measures included export restrictions on some chips used in supercomputing, and tougher requirements on the sale of semiconductor equipment.

In a conference call TSMC's CEO told reporters the full extent of Washington's new rules would take time to be seen.

It is "too early to provide a specific number, however the inventory correction will likely see its biggest impact sometime in the first half of 2023," CC Wei said, according to Bloomberg.

TSMC alone has seen around $230 billion wiped from its market capitalization value since January.

While chipmakers globally are bracing for dampened demand, the Taiwanese firm is more shielded from a downturn in part because it produces some of the most advanced and smallest chips that are still highly sought after and in short supply.

It controls more than half of global foundry output, with clients including Apple and Qualcomm.

The company reported forecast-beating results in the third quarter with a net income of TW$280.9 billion ($8.8 billion).