ChangXin Memory Technologies (CXMT) signed a long-term supply agreement with Tencent valued at over 20 billion yuan ($2.94 billion).
CXMT will provide dynamic random-access memory (DRAM) chips for Tencent’s servers over the next three to five years.
The domestic DRAM manufacturer is currently preparing for an initial public offering on Shanghai’s STAR Market to fund production expansion.
This partnership signals a broader effort by Chinese tech firms to secure domestic supply chains amid global geopolitical tensions.
CXMT is reportedly negotiating similar supply deals with other major Chinese internet companies.