China’s ChangXin Memory Technologies has signed a long-term deal to supply Tencent Holdings with more than 20 billion yuan ($2.94 billion) of server DRAM chips, Reuters reported, citing three people familiar with the matter.
DRAM, or dynamic random-access memory, helps servers quickly access data needed to run software and AI workloads. The agreement came as CXMT prepares for its initial public offering, which is expected to raise 29.5 billion yuan on Shanghai’s tech-focused Star Market.
The deal comes as the AI boom strains global memory supply. Memory makers are shifting more capacity toward high-bandwidth memory, or HBM, a premium form of DRAM used in AI data centers, tightening supplies of standard server DRAM.
The deal reflects a broader shift among Chinese tech giants toward local memory suppliers. Alibaba, ByteDance and Tencent have turned to CXMT and Yangtze Memory Technologies to ease the shortage after Samsung Electronics and SK Hynix prioritized HBM production for U.S. tech companies. #🇨🇳 ChinA.I. 🤖🧠🦾🤖
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EXCLUSIVE: China's CXMT wins $3 billion memory supply deal with Tencent, sources say
Chinese memory chipmaker ChangXin Memory Technologies has signed a long-term supply agreement with Tencent Holdings worth more than 20 billion yuan ahead of its blockbuster stock market debut, according to three people with knowledge of the matter.