en.Wedoany.com Reported - On June 30, CXMT signed a long-term supply agreement with Tencent, with a total value exceeding 20 billion yuan.

The agreement primarily covers the supply of server DRAM memory chips for the next several years, with the longest term reportedly ranging from three to five years, according to sources. DRAM is a critical component in servers and data centers, widely used in cloud computing, databases, and artificial intelligence workloads. Against the backdrop of tight global memory chip supply and rising prices, internet and cloud computing companies are securing supply through long-term agreements (LTAs).

Reuters believes that CXMT's securing of a long-term order exceeding 20 billion yuan from Tencent at this time represents a significant endorsement of CXMT by Tencent.

Currently, further details of this transaction remain unclear, including whether it covers CXMT's high-bandwidth memory (HBM) products. Two other sources stated that CXMT is also in talks with other major Chinese internet companies regarding similar collaborations.

Historically, the global DRAM market has long been dominated by three giants: US-based Micron Technology, South Korea's Samsung, and SK Hynix. Domestic internet companies' server DRAM chips have been heavily reliant on imports, posing risks of supply chain instability.

This deep collaboration not only validates the performance, quality, and supply stability of CXMT's DRAM products, effectively absorbing its new production capacity and accelerating the commercialization of that capacity, but also effectively fills the gap in domestic high-end server DRAM self-sufficiency, continuously advancing the localization substitution in the DRAM field.