EDIT: I should add that the WORST thing for a company like TSMC, or Intel, or any other one with very solid financial results to do in "downturns" is to cut back investment. Macro problems eventually pass, and you want to be strong and ready to rake in the $$$.
This is one thing I respected Otellini for greatly...during the recession, they did not cut back on process development or product development. They simply took 45nm nanometer capacity offline and moved it to 32nm so that by the time the recession passed, they would be cranking out millions of units of fresh 32nm product.
This strategy worked brilliantly, as you can see in Intel's 2010/2011 results.