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UPDATE 1-Texas forecasts current-quarter revenue below estimates, shares fall 9%

9%@ (Adds estimates, share movement)

Oct 22 (Reuters) - Texas Instruments Inc forecast current-quarter revenue well below estimates on Tuesday, the latest sign that the global microchip industry is being squeezed by a downturn in demand as well as a prolonged U.S.-China trade dispute.

Shares of the company, one of the first chipmakers to report earnings for the quarter, fell nearly 9% in extended trading as its third-quarter revenue also fell short of estimates.

Texas, whose broad lineup of products makes it a proxy for the global chip industry, said revenue declined as most markets weakened further.

It had previously warned that a slowdown in demand for microchips that started late last year may last a few more quarters, as China's economy slows and manufacturers face the fallout of an ongoing trade dispute with the United States.

Texas said it expected revenue for the fourth quarter in the range of $3.07 billion and $3.33 billion, missing analysts' average expectation of $3.59 billion, according to IBES data from Refinitiv.

For the third quarter, revenue fell 11.5% to $3.77 billion, missing the average estimate of $3.82 billion.

Net income fell to $1.43 billion, or $1.49 per share, in the third quarter ended Sept. 30, from $1.57 billion, or $1.58 per share, a year earlier.

Analysts on average were expecting the company to report profit of $1.42 per share. (Reporting by Munsif Vengattil in Bengaluru Editing by Saumyadeb Chakrabarty)