Chinese Chipmaker CXMT Secures $3 Billion Deal with Tencent
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Chinese Chipmaker CXMT Secures $3 Billion Deal with Tencent
- Chinese memory chipmaker ChangXin Memory Technologies (CXMT) has reportedly signed a long-term supply agreement worth over 20 billion yuan (approximately $2.94 billion) with Tencent Holdings.
- This agreement, reported on June 29, 2026, involves the supply of DRAM chips for Tencent's servers over a period of three to five years.
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Chinese memory chipmaker ChangXin Memory Technologies (CXMT) has secured a significant long-term supply agreement with Tencent Holdings, valued at over 20 billion yuan, or approximately $2.94 billion. The deal, reported on June 29, 2026, will see CXMT supply Dynamic Random-Access Memory (DRAM) chips for Tencent’s servers over a period of three to five years. These chips are crucial for cloud computing, databases, and artificial intelligence (AI) applications, areas where Tencent has been expanding its investments, particularly in AI data centers.
The agreement comes at a time of rising global demand for memory chips, largely driven by the rapid expansion of AI infrastructure. This increased demand has led to shortages and price surges in the DRAM market. For Tencent, securing this domestic supply is seen as a way to hedge against potential scarcity and geopolitical risks, as dominant memory suppliers are primarily from South Korea and the United States. The deal also aligns with China’s broader strategy to bolster its domestic semiconductor industry and reduce reliance on foreign technology.
CXMT, founded in 2016 with government backing, has rapidly grown to become China’s leading DRAM maker. The company held a 7.7% global DRAM market share in 2025 and reported a substantial 700% year-on-year increase in first-quarter revenue for 2026, reaching 50.8 billion yuan. The supply agreement with Tencent precedes CXMT’s highly anticipated stock market debut on the Shanghai STAR Market, which occurred on July 27, 2026. The initial public offering aimed to raise 29.5 billion yuan and saw CXMT’s shares surge by nearly 470% on their debut, making it China’s most valuable listed company by market capitalization, surpassing Industrial and Commercial Bank of China and even Tencent itself by August 13, 2026.