ChangXin Memory signs long-term supply agreement with Tencent, contract value exceeds 20 billion yuan

According to Reuters, three informed sources revealed that Chinese memory chip manufacturer Changxin Memory (CXMT) has signed a long-term supply agreement with Tencent Holdings (0700.HK) prior to its highly anticipated IPO, valued at over 20 billion yuan (approximately 2.94 billion U.S. dollars). The sources said the agreement covers server DRAM (Dynamic Random Access Memory) chip supply for the coming years, with two of the sources stating the contract term is up to 3 years, while another indicated it could reach up to 5 years. As the details are confidential, all three sources requested anonymity. The report stated that DRAM is a key component of servers supporting cloud computing, databases, and AI workloads, and amid ongoing global shortages and soaring memory chip costs, long-term supply contracts have become a priority for enterprises. It remains unclear whether the agreement includes further details such as Changxin Memory's High Bandwidth Memory (HBM). Neither Changxin Memory nor Tencent immediately responded to requests for comment.