The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Company, has reported record sales and profit for the July-September quarter amid a surge in demand for AI chips.

TSMC announced on Thursday that its consolidated sales jumped 39 percent from the same period last year to a quarterly record of 759.6 billion Taiwan dollars, or about 23.6 billion US dollars.

The Taiwanese company also said net income soared 54.2 percent to 325.2 billion Taiwan dollars, or about 10.1 billion US dollars, another record for a three-month period.

The firm has reported increases in sales and profit for three consecutive quarters.

Officials attribute the growth to strong demand for cutting-edge semiconductors for use in AI systems, and robust sales of smartphone chips.

TSMC Chief Executive Officer C.C. Wei said in a news conference that demand for AI chips is just beginning and will continue to increase for years to come.