CXMT signs server DRAM supply deal worth more than 20 billion yuan with Tencent ahead of STAR Market IPO

Chinese DRAM maker ChangXin Memory Technologies (CXMT) has signed a long-term server DRAM supply agreement with Tencent worth more than 20 billion yuan ($2.94 billion). The contract is set to run for several years, with people familiar with the matter saying it spans up to three years or up to five years. The deal comes as CXMT prepares for a planned listing on Shanghai’s STAR Market and provides a major commercial endorsement ahead of the IPO, according to those people. CXMT is China’s only DRAM maker producing at scale, with about 7.7% market share, and is pushing to expand capacity to roughly 600,000 wafers per month.