UPDATE 2-Texas Instruments raises quarterly targets

*Raises Q2 EPS view to 14-22 cents range from 1-15 cents

*Raises Q2 rev view to $2.3-$2.5 bln

*TI shares rise 4 pct in late trade to $20.60 (Adds company quote, analyst quotes)

NEW YORK, June 8 (Reuters) - Texas Instruments (TXN.N) raised its targets for second-quarter earnings and revenue, signaling improving demand in the chip market, and its shares rose 4 percent.

Analog chips, used in a everything from phones and consumer electronics to cars and industrial equipment, were the biggest driver of growth in the quarter, TI said during a conference call with analysts.

The company said it now expects second-quarter earnings per share of 14 cents to 22 cents, much better than its previously announced target range of 1 cent to 15 cents.

It forecast current-quarter revenue of $2.3 billion to $2.5 billion compared with its previous expectation for a range of $1.95 billion to $2.40 billion.

On average analysts had expected revenue of $2.21 billion, according to Reuters Estimates.

Analysts said investors had expected TI's targets to increase but that the improvement was better than hoped for.