UPDATE 1-UMC Oct sales show signs of weaker tech demand

* October sales up 18 pct y/y but down from September

* Advanced technology to bolster UMC's bottom line

* Share price has more than doubled this year, outpacing TSMC (Adds details and graphic)

By Baker Li

TAIPEI, Nov 9 (Reuters) - Taiwan's UMC (2303.TW), the world's No.2 contract chipmaker, saw October sales rise 18 percent from a year earlier, but the result was lower than a two-year high reached in September, showing signs of weakness in technology demand.

About a week ago, UMC (UMC.N) flagged a flat fourth quarter as demand typically slows from a peak late in the third quarter into the first quarter, while analysts were upbeat on the compay's earnings growth next year as it beefs up efforts to make more chips using advanced technology that yeilds higher margins.

New technologies should further cut manufacturing costs and help the chip foundry win new orders from clients, who are selling more powerful chips for a new generation of personal computers, mobile phones and flat-screen TVs.

United Microelectronics Corp (UMC) said on Monday that sales reached T$9.3 billion ($287 million) last month, up from T$7.9 billion a year earlier, but down 2.5 percent from September.

(For a graphic, click here)