Chartered Semiconductor, the Singapore-based foundry, has warned of a further drop in capacity.
It expects average utilisation of its fabs to be in the 'low 20s' instead of the 'mid-20s' which it originally projected back in July.
Accordingly, revenues are forecast to be down between 15 and 20% from the prior quarter's $100.7m, having previously said it expected a 15% fall.
The company did not change its earnings guidance, however. It has maintained its forecast of a loss of between $84 and $86m as a result of cost-cutting measures.
Chartered also reiterated that it expects a bottoming-out of the downcycle in the second half.
Barry Waite, president and CEO, said: "We still expect the cycle to bottom some time in the second half of this year, however, the exact timing and the pace of the expected recovery remain difficult to predict.
Third quarter results are due on the 23rd October.