UPDATE 2-Chartered Semi ups Q2 guidance, shares fall

* Revises Q2 revenue upward, pares loss projection

* Singapore-traded shares slip despite forecast revision

* Larger rivals TSMC, UMC also seeing pickup in demand

(Adds detail, share price reaction)

LOS ANGELES, June 11 (Reuters) - Chartered Semiconductor (CSMF.SI) CHRTD.O on Thursday revised upwards its guidance for the current quarter, in another sign of a possible recovery in the chip sector.

Chartered said it now expected second-quarter revenue to increase about 60 percent from its first-quarter revenue of $244 million, clocking in at about $338-$348 million.

It also now expects to make a loss of about $45-$53 million in the current three months, compared to its previous forecast of a $54-$64 million loss.

"Compared to our expectation in April, we are seeing incremental improvement in our business, mainly coming from our mature technologies," finance director George Thomas said in a statement.

Investors and analysts were unimpressed with the revised guidance. In Asian time on Friday, Chartered's Singapore-traded shares were down 0.9 percent at 0430 GMT, underperforming a flat performance on the benchmark Straits Times index .FTSTI.

"Demand is still weak, it's just less bad than it was before," said Patrick Yau, an analyst at Macquarie Securities who has a 'neutral' call on the company.

"The industry as a whole is still bleeding, and it's important to note that while things are improving, we won't see be seeing record profits anytime soon."

Chartered's share price has almost doubled since the beginning of the year, outpacing the big board as investors bet the semiconductor equipment industry will recover soon. [ID:nLA473333]

The company's revised guidance was in line with that given by market leaders TSMC (2330.TW) (TSM.N) and UMC (2303.TW) (UMC.N), who have also been experiencing a revival on some inventory restocking and an increase in client demand. [ID:nTP240768]

Other technology companies ranging from PC makers to LCD panel manufacturers have also been reporting a similar comeback, with many optimistic on their prospects in the next half of the year as the global downturn eases.

"We believe that both monitor and TV panel prices could continue to rise steadily with some supply tightness in popular screen sizes in the near term," PC monitor maker TPV (0903.HK) Chairman Jason Hsuan said on Wednesday while announcing the company's results. (Reporting by Susan Zeidler and Kelvin Soh in Taipei; Editing by Dan Lalor)