Chinese memory chipmaker ChangXin Memory Technologies (CXMT) has signed a long-term supply agreement with Tencent Holdings worth over $2.94 billion, according to sources.
Deal Details
The agreement covers several years of DRAM chip supply for servers. CXMT will provide dynamic random-access memory (DRAM) chips, a critical component for servers that power cloud computing, databases, and AI workloads.
CXMT and Tencent did not immediately respond to requests for comment. The company is aggressively expanding production capacity to capitalize on the upcycle, with plans to double its DRAM wafer output to approximately 600,000 wafers per month.
Market Impact
The global memory market could reach $786 billion this year and $1.2 trillion in 2027, according to estimates. CXMT has ridden the upcycle to explosive growth, with its first-quarter revenue hitting 50.8 billion yuan, up 700% year-on-year.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
