We've only just ended one inventory correction cycle and it turns out that in Q2 and Q3 inventory was and will be going back up!
Hence the necessity for a "correction" in Q4/Q1.
Meanwhile at the leading-edge node Qualcomm can't get enough chips!
That's the semiconductor market for you.
TSMC is still likely to show about 15% growth in 2012, not bad for an IC market expected to increase at a low single-digit rate.
Interesting to note that, because of the way TSMC defines its "capacity," the company ran at a 102% utilization rate in 2Q12! There may be a lot of speculation about Apple using TSMC as a foundry in the future but at this point, TSMC doesn't have much capacity to allocate to Apple.