CXMT, Tencent Sign DRAM Deal

Chinese memory chipmaker Yangtze Memory Technologies has signed a long-term supply agreement with Tencent worth over 20 billion yuan ($2.94 billion) for DRAM chips. This deal, covering several years of supply for servers, comes ahead of Yangtze Memory Technologies's planned initial public offering on the STAR Market, which aims to raise 29.5 billion yuan. The agreement is seen as a major endorsement for Yangtze Memory Technologies, which is a key player in China's push for memory self-sufficiency. The deal also reflects a broader shift in China's technology supply chain, as domestic internet giants like Tencent seek to secure memory chip supply amidst a prolonged global shortage and rising prices. Yangtze Memory Technologies is also aggressively expanding its production capacity, aiming to double its DRAM wafer output.