Tencent Secures Long-Term DRAM Supply Deal with CXMT.

The agreement covers several years of DRAM chip supply for servers, the people said, speaking on condition of anonymity because the details are private. Two of the sources said the deal spans up to three years, while the third said it covers up to five years.

DRAM, or dynamic random-access memory, is a critical component for servers that power cloud computing, databases and AI workloads. Modern data centres need DRAM to run applications without bottlenecks, making long-term supply contracts a priority for companies amid a prolonged global shortage that has driven memory chip costs sharply higher. Further details of the deal were not immediately clear, including whether it includes CXMT’s high-bandwidth memory, or HBM, an essential component in high-performance AI chips.

CXMT and Tencent did not immediately respond to requests for comment.

Founded in 2016 with government backing, CXMT leads China’s strategic push to establish a foothold in a global DRAM market dominated by South Korean and U.S. companies. The previously unreported deal comes at a critical juncture for CXMT, which received approval from the Shanghai Stock Exchange in May for an initial public offering on the STAR Market that aims to raise 29.5 billion yuan, setting it up to be one of mainland China’s largest listings in years. The size of the commitment from one of China’s biggest internet companies represents a major endorsement of the Hefei-based firm, which has long been viewed as technologically behind global leaders Samsung Electronics and SK Hynix.