Contract chip maker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) reported profit growth as it booked wider profit margins following a boost in demand from mobile device manufacturers. The company has managed to profit during the last quarters thanks to the spread of smartphones and its ability to produce high-quality chips.

TSMC 's net profit rise 21 percent to T$47.9 billion ($1.59 billion) in January-March, the company said in a statement on Thursday.

TSMC had earlier forecast double-digit profit growth this year as its world-first 20-nanometer chip-making technology begins to supplant the 28-nanometer standard.

TSMC began manufacturing with 20-nanometer technology in January-March, though it has yet to book related revenue.