In June 2026, it was reported that China's leading memory chipmaker CXMT (Changxin Memory Technologies) has formally signed a multi-year long-term supply agreement valued at over RMB 20 billion (approximately USD 2.94 billion) with Tencent Holdings. Under the agreement, CXMT will provide a steady supply of DRAM memory chips for Tencent's server operations. The contract carries a maximum term of three to five years, primarily covering server-grade DDR5 DRAM chip supply.

Global DRAM Shortage Spurs Domestic Substitution Opportunity

The global DRAM market in 2026 is experiencing its most severe supply shortage in nearly 15 years, with a supply gap of 4.9%. In this context, overseas memory giants such as Samsung, SK Hynix, and Micron have prioritized allocating capacity to overseas major clients including Apple, Microsoft, and NVIDIA, leaving the incremental demand of domestic cloud providers difficult to meet. At the same time, overseas DRAM spot prices are approximately 30% higher than domestic chips. With performance already meeting standards, the price advantage of domestic memory chips has become increasingly pronounced.

As a critical component in servers supporting cloud computing, database, and AI workloads, DRAM chips have made securing long-term stable supply a top strategic priority for major cloud providers amid global memory shortages and soaring costs. Locking in supply through Long-Term Agreements (LTAs) has become an imperative choice for Internet and cloud computing enterprises.

CXMT's Breakthroughs in Capacity and Performance

CXMT's ability to secure this major order stems from triple breakthroughs in technology, production capacity, and reliability. As of Q1 2026, CXMT's DDR5 products have passed stringent testing by cloud providers including Tencent, meeting demanding 7×24 high-availability requirements.

In terms of capacity, CXMT operates two 12-inch DRAM fabs in Hefei and one in Beijing, with a total wafer capacity of approximately 300,000 wafers per month, firmly ranking first in domestic DRAM capacity and fourth globally. Industry analyst firm SemiAnalysis projects that by the end of 2026, CXMT's monthly capacity will reach approximately 350,000 wafers, gradually closing in on Micron's projected 385,000 wafers, positioning it to become the world's third-largest DRAM supplier.

Strategic Significance

The global DRAM market has long been dominated by three giants: Micron, Samsung, and SK Hynix. Domestic Internet enterprises have been heavily dependent on imported server DRAM chips, exposing their supply chains to instability risks. This deep collaboration not only validates CXMT's memroy product performance, quality, and supply reliability, effectively absorbing its newly added capacity, but also fills the gap in domestic autonomous supply of high-end server DRAM.

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