CXMT – ChangXin Memory Technologies has penned a multi-year memory chip supply deal with Tencent worth $3 billion (20 billion yuan). The long-term export contract has appeared amid the ongoing shortage of DRAM processors in the market.
Deal reveals that CXMT will supply memory chip worth $3 billion (approx. $2.94 billion) to Tencent for the upcoming years. The deal is expected to last for three to five years, using DRAMs for servers.
It is unclear if CXMT will supply HBM (high-bandwidth memory) chipsets or any other crucial component used for developing cutting-edge AI-powered semiconductors.
The CXMT is currently leading in China’s AI growth contribution. It has a big foothold in the Chinese AI market and is capable of competing with global chip brands.
DRAM refers to Dynamic Random Access Memory. It is a prominent part of servers that powers up cloud computing, databases, and AI workloads. Data centers also require DRAM to run applications for the long term without any kind of interruption.
Besides Tencent Holdings, CXMT is making news for soon collaborating with major Chinese internet companies like Alibaba Cloud, ByteDance, Lenovo, and even Xiaomi.
The company is further focusing on developing a new Shanghai plant focused on DRAM chip production. It would be worth seeing how helpful the newly signed contract proves for CXMT.
(Image Credits: CXMT)
