Chip shortages will peak in the first quarter, but in the second quarter "production races to keep up with demand" and the North American market comes "back from what's a depressed situation," he said.
There's also China, which is "just going to 3G [phones] so their data rates and content rates are going up significantly," he said.
Broadcom , despite its recent troubles, is one of his defensive picks in the sector, as are International Rectifier and Maxim Integrated
. All three, he said, have "net cash, high dividend yields and somewhat sustainable businesses."
His other picks include Fairchild Semiconductor , ON Semiconconductor and Atmel .
Intel is not on his list, he said, because it's "a little more challenged" by the threat posed by Apple's iPad and "the business fundamentals aren't great. I'd rather own Qualcomm," which he said has more "tailwinds at its back."
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