Chinese memory maker, ChangXin Memory Technologies, otherwise known as CXMT, recently signed a multi-year contract with Tencent Holdings, promising to supply the latter with DRAM chips for servers. The deal is reportedly worth more than US$2.94 billion (~RM12.04 billion).
Two sources close to Reuters told the news outlet that the deal will last for three years, while a third says that the deal is actually for up to five years. Details of the deal are, unfortunately, still vague, as all sources said that they would only confirm the news of the deal on the condition of anonymity.
Who Is CXMT?
CXMT was founded in 2016, long before the RAM-mageddon came about and with the backing of the Chinese government. Its creation came as part of the country’s desire to create a foothold in the global DRAM market, which at this point was saturated by chips produced by South Korean and US companies.
Fast forward to today, and the company is now a DRAM supplier for many consumer market memory brands. Corsair is one such brand: last month, evidence of the company using CXMT memory modules appeared, a sign that major memory makers Samsung, SK Hynix, and Micron are either struggling with the global memory shortage or things are going according to plan for them, given the recent lawsuit.
That said, RAM-mageddon has certainly been good on CXMT. The company saw its Q1 revenue for this year rise to US$7.4 billion (~RM29.3 billion), a 719% year-on-year increase for them. This has enabled the company to get a listing on the Shanghai Stock Exchange, as well as to plan for a multi-billion ringgit IPO later in the year. With its recent deal with Tencent, things are certainly looking up for it.
Reuters also reports that the memory maker is aggressively expanding its production capacity in an effort to capitalise on its demand boom. It’s building a new DRAM plant in the city of Shanghai, while it already has two fabrication plants that have a combined output of 300,000 wafers per month.
(Source: Reuters)
