China's top DRAM maker, CXMT, has inked a multi-year chip supply agreement with Tencent worth over $2.94 billion (RMB 20B+) , according to three industry sources cited by Reuters. The deal covers DRAM chips dedicated to Tencent's cloud computing and AI server infrastructure.
Timeline estimates vary – two sources say the contract runs up to three years, while a third suggests up to five years. Further details remain undisclosed. Beyond Tencent, CXMT is reportedly in similar long-term negotiations with other major Chinese internet giants, aggressively expanding its cloud customer base.
Scale is CXMT's core advantage in landing billion-dollar orders. The company operates three 12-inch DRAM wafer fabs in Hefei and Beijing, with current monthly output ranking first in China and fourth globally. Industry forecasts project its 12-inch equivalent wafer capacity will exceed 350,000 units per month by end-2026, steadily narrowing the gap with Micron.
The global DRAM market has long been dominated by Samsung, SK Hynix, and Micron – leaving Chinese cloud vendors heavily reliant on imports for server memory. This landmark order validates CXMT's product performance, production yield, and stable delivery capability. It not only absorbs the company's expanding capacity but also fills a critical gap in domestic high-end server memory supply, accelerating localization in the memory sector.
ICgoodFind Takeaway:
Tencent's billion-dollar vote of confidence signals that CXMT has crossed the reliability threshold for hyperscalers. This isn't just a win for CXMT – it's a pivot point for China's entire cloud supply chain to de-risk from offshore DRAM dependency.
