Japan chip gear maker Disco Q2 orders weak

TOKYO, Oct 1 (Reuters) - Japanese semiconductor equipment maker Disco Corp (6146.T) said orders for its tools were weak in July-September, the latest sign that a slump in the microchip sector could last for some time.

Disco, the world's largest maker of tools used to cut, grind and polish silicon wafers, said orders fell short of alrady sluggish sales in July-September, boding ill for sales in the October-December quarter.

Disco, which supplies equipment and blades to memory makers such as Toshiba Corp (6502.T) and competes with Tokyo Seimitsu Co Ltd (7729.T), said it logged sales of 13.9 billion yen ($131.4 million) in July-September, down 34.5 percent from the previous year.

Chip makers worldwide are struggling to reduce inventory and are reining in spending to expand production.

"We don't yet see an exit," said a Disco spokesman.

Shares of Disco closed down 2.8 percent at 2,955 yen ahead of the announcement, while Tokyo's electrical machinery index .IELEC.T rose 1.5 percent. ($1=105.82 Yen) (Reporting by Mayumi Negishi; Editing by Michael Watson)