UPDATE 1-Amkor Technology tempers view on Q1 sales drop

* Prior est was Q1 sales drop of 30-38 pct sequentially

* Now sees Q1 sales down 30-34 pct

* Sees Q1 gross margin 8-12 pct

March 25 (Reuters) - Amkor Technology Inc (AMKR.O), a microchip packaging and testing company, said first-quarter sales may not fall as much as previously expected and boosted its gross margin forecast.

First-quarter net sales are tracking to a sequential decline of 30 percent to 34 percent, the company said, implying a sales outlook of $362.3 million to $384.3 million.

Its prior forecast was first-quarter sales decline of 30 percent to 38 percent, from $549 million in the fourth quarter.

"Gross margin for the first quarter is expected to be 8 percent to 12 percent of net sales," the company said.

Earlier, it had estimated first-quarter gross margin between a fall of 2 percent to a rise of 5 percent.

The company said it was neither reaffirming nor updating its prior outlook regarding first quarter net income.

Amkor had forecast a net loss of 34 cents to 49 cents a share for the first quarter, including the impact of charges related to job cuts.

Shares of the company closed at $2.59 Wednesday on Nasdaq.

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For the press release, double click [ID:nBw256160a] (Reporting by Eric Yep in Bangalore; Editing by Ratul Ray Chaudhuri)