ChangXin Memory Technologies (CXMT), a Hefei-based Chinese memory chipmaker, has signed a multi-year server dynamic random-access memory (DRAM) supply deal with Tencent Holdings, according to people familiar with the matter.

The agreement is worth more than 20 billion yuan (US$2.94 billion).

Two sources said the contract runs for up to three years, while a third said it could last up to five years.

It was unclear whether the agreement includes high-bandwidth memory (HBM).

The deal adds to CXMT’s rise as China’s leading domestic DRAM maker in mass production, with DDR5 products already aimed at servers.

It also aligns with Tencent’s infrastructure buildout.

Its first-quarter capital expenditure reached 31.9 billion yuan (US$4.69 billion) as the company prioritized internal AI demand.

CXMT received approval from the Shanghai Stock Exchange in May for a 29.5 billion yuan (US$4.34 billion) initial public offering on Shanghai’s STAR Market.

The company is also in talks with other Chinese internet companies on similar deals and has begun building a new Shanghai DRAM plant.

Separate research said 69.5% of the planned initial public offering proceeds are earmarked for wafer-line and DRAM technology upgrades.

🔗 Source: Reuters

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