Taiwan Semiconductor Manufacturing Company ((TSMC) has disclosed that its consolidated revenues for the third quarter of 2011 are expected to exceed its guidance given in July, thanks to some "rush" orders from customers.

Industry sources speculate that the short lead-time orders were placed by the foundry's fabless clients including Qualcomm, Broadcom, MediaTek and MStar Semiconductor, which enjoyed rising demand for their smartphone solutions targeting China and other emerging markets.

However, demand for smartphones coming from the Europe, Japan and US markets remain sluggish, the sources indicated. The major chip providers actually are bracing for unusual weak demand during the Christmas and year-end shopping season, the sources added.

TSMC's sales and utilization rate for the fourth quarter may come under downward pressure, as order visibility remains opaque, the sources said.

TSMC reported NT$37.64 billion (US$1.29 billion) in consolidated revenues for August 2011, up 6.2% sequentially. Consolidated sales for July and August totaled NT$73.08 billion, already making up 69-72% of the company's targeted NT$102-104 billion for the third quarter.