UPDATE 4-ASML bookings signal chip uptick

* Q1 sales seen 1.2 bln euros, H1 sales seen 2.4 bln euros

* Q1 orders seen above Q4's 710 mln euros

* CEO says customers are spending, investing

* Shares surge to highest level since 2000

By Roberta Cowan

VELDHOVEN, Jan 18 (Reuters) - Rising demand for smartphones, tablets and the latest super-thin personal computers is driving strong sales and new orders at Dutch group ASML, the world's dominant chip equipment maker.

ASML shares hit an 11-year high on Wednesday after it forecast demand in the early part of 2012 would top the previous quarter.

The company, which has between a 75-80 percent market share, counts Samsung Electronics, Taiwan Semiconductor Manufacturing and Intel among its customers.

"We expect a healthy start for 2012, as we plan Q1 2012 bookings at a level above that of Q4 2011 and a first-half sales level of about 2.4 billion euros," Chief Executive Eric Meurice said.

"Our customers are indeed continuing their introductions of advanced chip designs," said Maurice.

Some analysts reckon first-quarter orders for ASML's latest machines will be at least 1 billion euros.

Meurice said he expects strong chip demand will continue into the second half of the year but would not predict a level.

The industry stalled in the middle of 2011 as demand for consumer gadgets slowed in Europe and elsewhere due to economic uncertainties, which led to a slight slowdown in ASML's order book in the second half of 2011.

But ASML, whose machines map out electronic circuits on microchips, still reported a record sales and profit in 2011, driven by demand for the chips found in iPads and smartphones.

Chief Financial Officer Peter Wennink said despite the uncertain macro economic climate and European debt crisis, ASML customers grew more confident near the end of 2011 and in November began placing first-quarter orders for the latest lithography machines.

NO ALARMS

Meurice was unfazed by recent industry reports and company comments about capital expenditure cuts in the technology sector due to weakening consumer markets.

"Don't believe what you hear about capex in this industry, as customers use capex messages to distract the competition," he said.

ASML would not be affected by customers reducing capital expenditure because they rarely cut back on the lithography tools necessary to make chips smaller and smarter, he told Reuters.

Pointing to Samsung, the world's No. 1 cellphone maker by revenue, which announced a massive capital expansion plan on Tuesday, Wennink said ASML "listens to its customers, knows their roadmaps" and never factors in industry capex claims when it plans for the future.

BELLWETHER

ASML's order book is seen as a barometer for the expectations of big chipmakers and the wider technology sector.

"The order intake of ASML tends to move ahead of the rest of the equipment industry, due to the relatively longer lead times and critical nature of leading edge lithography technology," said Victor Bareno, SNS Securities analyst.

ASML said sales for the first half of the year would be around 2.4 billion ($3.1 billion), while the first-quarter order book will top the fourth quarter's 710 million euros.

"Given this strong revenue it is straightforward that first-quarter orders will not just increase, but should jump to a very strong level of at least 1 billion euros," said Bareno.

ASML's fourth-quarter sales of 1.211 billion euros beat expectations but were well below the record 1.521 billion euros in the same quarter in 2010.

Fourth-quarter net profit was 285 million euros, down from 407 million in the same period in 2010 but beating analysts' forecasts of 224 million euros.

ASML shares have risen 17 percent in the last three months as investors waited for the firm to signal a sector recovery.

The company also said on Wednesday it will extend its current 1 billion euro share buyback program by 130 million euros and raise the 2011 dividend to 0.46 euros, up from the 0.40 euros paid in 2010.

ASML shares were up 1.0 percent at 33.99 euros at 1345 GMT, outperforming the AEX index, after hitting 34.68 euros, the highest level since November 2000.