Chip giant TSMC posted a 13.8 percent jump in third-quarter profit on Thursday on the back of booming demand for semiconductors to power smartphones and other gadgets during the COVID-19 pandemic amid a supply crunch.

TSMC, the world's largest contract chipmaker and a key supplier to Apple Inc., posted a net profit of T$156.3 billion ($5.56 billion) in July-September, well above the T$149 billion average of 22 analyst estimates compiled by Refinitiv.

Advanced chips made by TSMC, formally known as Taiwan Semiconductor Manufacturing Co., are used in everything from high-end smartphones to artificial intelligence, cars and a wide variety of lower-end consumer goods.

The pandemic-induced global chip shortage has forced automakers to cut production and hurt manufacturers of smartphones, laptops and consumer appliances.

"Our third-quarter business was mainly supported by strong demand across all four growth platforms," chief financial officer Wendell Huang told an analyst conference, referring to strong chip demand including those for smartphones, cars and "Internet of Things" – the concept of connecting household devices to the internet.

"Moving into fourth quarter 2021, we expect our business to be supported by strong demand for our industry-leading 5-nanometer technology."

The company lifted its revenue growth forecast for 2021 to about 24 percent, versus an earlier forecast of above 20 percent, citing an "industry mega-trend" of strong chip demand.

TSMC shares have risen about 8.5 percent so far this year, giving it a market value of $526.3 billion, more than double that of competitor and client Intel Corp.