According to a Reuters report, Chinese DRAM maker CXMT (ChangXin Memory Technologies) has signed a long-term supply agreement worth more than RMB 20 billion ($2.94 billion) with Chinese internet giant Tencent Holdings, ahead of CXMT’s planned listing on Shanghai’s STAR Market.
Citing three people familiar with the matter, the multi-year agreement will secure the supply of DRAM chips for Tencent’s server business, making it one of the largest procurement commitments in recent years between a domestic Chinese chipmaker and a major internet company.
Two of the sources said the agreement could run for up to three years, while a third source said it could last as long as five years. As the detailed terms of the deal have not been publicly disclosed, the exact product specifications and supply duration remain unclear. Neither CXMT nor Tencent has commented on the report. [Icsmart, in Chinese]