International Risks. In January 2005, South Korea's Hynix Semiconductor, Inc., the world's second largest producer of dynamic random access memory, or DRAM, chips announced an alliance with Taiwan's ProMOS Technologies, Inc., to produce computer chips. For ProMOS, the alliance was needed to provide the company with a steady supply of chips. For Hynix, the motive for the alliance was tariffs placed on computer chips manufactured in South Korea. In 2004, both the United States and the European Union had enacted steep tariffs on computer chips from that country. What advantages might Hynix see from the alliance? What are some of the risks to Hynix?
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