Chinese memory chipmaker ChangXin Memory Technologies (CXMT) has secured a long-term supply agreement worth approximately 20 billion yuan ($2.94 billion) with technology giant Tencent Holdings, according to sources familiar with the matter. The deal is expected to run for three to five years and will see CXMT supply DRAM memory chips for Tencent’s rapidly growing cloud computing and artificial intelligence operations.
The agreement comes at a time when demand for high-performance memory chips continues to surge globally due to massive investments in AI infrastructure. It also marks a significant milestone for CXMT as the company prepares for one of China’s largest stock market listings in recent years.
Tencent Strengthens AI Infrastructure
Under the agreement, CXMT will supply DRAM (Dynamic Random Access Memory) chips used in servers that power Tencent’s cloud computing platforms, AI models, online services, and enterprise data centers.
As Tencent continues expanding its artificial intelligence capabilities, reliable access to memory chips has become increasingly important. The long-term contract is expected to provide the company with a stable domestic supply while reducing dependence on foreign semiconductor manufacturers amid ongoing global chip shortages.
Major Win for China’s Semiconductor Industry
The agreement represents one of the largest commercial contracts secured by a Chinese memory chip manufacturer and highlights Beijing’s efforts to build a self-sufficient semiconductor industry.
Founded in 2016, CXMT has rapidly emerged as China’s leading producer of DRAM memory chips, challenging established global manufacturers including Samsung Electronics, SK Hynix, and Micron Technology. The company has steadily expanded production capacity as China seeks to reduce its reliance on imported semiconductors.
Company Expands Production Capacity
CXMT has experienced rapid growth over the past year as strong demand and rising memory prices boosted its financial performance.
According to industry sources, the company reported first-quarter revenue of approximately 50.8 billion yuan, representing a dramatic increase from the previous year. At the same time, CXMT has accelerated expansion across manufacturing facilities in Hefei, Shanghai, and Beijing, with production capacity expected to reach nearly 600,000 wafers per month.
The expansion is intended to meet growing domestic demand while positioning the company as a stronger competitor in the global memory chip market.
IPO Plans Gain Momentum
The Tencent agreement comes as CXMT prepares for its anticipated initial public offering on Shanghai’s STAR Market.
The company is expected to raise approximately 29.5 billion yuan, making it one of China’s largest IPOs in recent years. Analysts believe securing Tencent as a major long-term customer strengthens CXMT’s investment case by demonstrating stable demand for its products and improving future revenue visibility.
AI Demand Continues to Drive Memory Market
The global memory chip industry has entered a new growth cycle as artificial intelligence applications require significantly larger amounts of DRAM for training and running advanced AI models.
Cloud service providers, technology companies, and data center operators are investing billions of dollars in AI infrastructure, increasing demand for high-performance memory products. The resulting supply shortages have pushed memory prices higher, benefiting manufacturers such as CXMT while encouraging further investment in production capacity.
Strategic Deal Signals Growing Confidence
The long-term partnership between Tencent and CXMT reflects China’s broader strategy to strengthen its domestic semiconductor ecosystem amid ongoing geopolitical and technology tensions.
For Tencent, the agreement provides greater supply chain security for its AI ambitions. For CXMT, it offers a major commercial endorsement ahead of its planned IPO and reinforces its position as one of China’s fastest-growing semiconductor companies. As global demand for AI hardware continues to rise, the deal could become a defining milestone in China’s effort to build a globally competitive memory chip industry.
