UPDATE 1-TSMC sees higher Q3 sales and stable margins

(Recasts with details)

TAIPEI, July 3 (Reuters) - Top contract chip maker TSMC (2330.TW) (TSM.N) expects its third-quarter sales to be higher than the second quarter's and it also forecasts stable profit margins, easing market concerns over slower technology demand.

TSMC Chief Financial Officer Lora Ho said in a statement late on Thursday that TSMC's third-quarter gross profit margin and operating profit margin would be similar to the second-quarter level, but she did not give estimated figures.

The forecasts came after the Taipei stock market closed on Thursday, when TSMC's shares lost 4.9 percent to a five-month low, against the main TAIEX's 0.6 percent gain.

Despite the day's rise, the TAIEX had been on a downward track since the year's high hit on May 20 due to fears that high fuel costs and inflation threaten to hurt consumers' spending on new technology products.

In the statement, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) reiterated that it expected the global semiconductor market to grow around 5 percent this year in sales terms.

In late July, TSMC is set to hold its quarterly investor conference, where the company will announce second-quarter earnings and give more details on its forecasts for the current quarter.

Meanwhile, TSMC said its second-quarter sales, gross profit margin and operating profit margin could have matched or slightly exceeded its previous forecasts made in late April.

TSMC had forecast second-quarter sales would reach T$87-T$89 billion, versus T$87.5 billion in the first quarter.

Second-quarter gross profit margin should be 43-45 percent, against the first quarter's 43.7 percent, with the quarterly operating profit margin at 32-34 percent, compared with the first quarter's 33.3 percent. (Reporting by Baker Li, editing by Will Waterman)