He is partial to the traditional segment. In a widely applauded diversification move, it has also become a global player in wireless phones and TFD-LCD screens. Another Korean chipmaker, Hyundai Electronics, is benefiting from renewed demand, which is expected to grow stronger. In five years, he predicts, TSMC and UMC will be bigger and far more competitive than they are now. Petersik also favors Via Technologies, a Taiwan microprocessor and chipset maker taken to court by Intel for copyright infringement.
Software is another favored sector.
These are globally competitive companies. Lim says the Indian software players have been seen as overvalued. But they are growing earnings very rapidly, and there is no reason why they should not have valuations similar to U.S. software companies. The Y2K millennium bug scare brought in a lot of business. That has ended, but strong demand for Internet-enabling software and consultancies has taken up the slack.