South Korean Media: China's CXMT Supplies Tencent with DRAM Worth 20 Billion RMB

¬ China’s Domestic Memory Independence Officially Takes Shape

It has been reported that China’s largest memory chip manufacturer, ChangXin Memory Technologies (CXMT), has signed a long-term supply contract worth 20 billion RMB (approximately 4.5 trillion KRW) with Chinese tech giant Tencent for server DRAM. Amid global expansion of AI investments, tight DRAM supply, and soaring prices, analysts believe that Chinese tech giants are beginning to shift their storage procurement strategy away from foreign suppliers like Samsung Electronics, SK Hynix, and Micron toward domestic firms.

Chinese Major Tech Companies Officially Procure Domestic DRAM

According to Reuters on the 29th local time, citing multiple sources, ChangXin Memory Technologies (CXMT) has agreed to supply Tencent with server DRAM valued at over 20 billion RMB in the coming years. The contract duration could last up to three or five years. Tencent, one of China’s largest cloud computing and internet companies, is currently expanding its investment in artificial intelligence data centers. This marks the first large-scale, long-term contract CXMT has secured with a major Chinese tech company, indicating that growing demand for AI server memory in China is now translating into actual purchase agreements.

Moreover, there is growing recognition that China’s semiconductor self-reliance strategy has officially taken root in the memory sector. For years, the global DRAM market has been dominated by three major players—Samsung Electronics, SK Hynix, and U.S.-based Micron—with combined market share exceeding 90%. Chinese tech companies have heavily relied on these South Korean and American firms for DRAM used in servers and smartphones. However, with ongoing U.S. sanctions against China’s semiconductor industry, pressure continues to mount on China to nurture domestic memory chip manufacturers such as ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC).

The AI-driven memory shortage is now presenting significant growth opportunities for ChangXin Memory Technologies (CXMT). As investments in generative AI expand, DRAM demand has surged. Samsung Electronics, SK Hynix, and Micron are prioritizing production capacity allocation for high-value products like HBM and orders from major U.S. tech companies’ data centers. This has led to tight supply conditions for general-purpose DRAM used in smartphones and PCs, as well as server DRAM. While CXMT still faces a technological gap compared to Korean counterparts in the HBM segment, it is rapidly capturing demand from Chinese smartphones, PCs, and data centers in mainstream products such as standard DDR5 for PCs and low-power LPDDR5X, leveraging advantages in pricing and volume.

ChangXin Memory Sought Even by Apple… Domestic Demand in China Is Also Tightening

Market attention toward CXMT has intensified following reports that Apple is considering purchasing memory chips from the company. According to the Financial Times (FT) on the 26th, Apple is seeking approval from the Trump administration for acquiring CXMT’s memory chips.

With memory prices from existing suppliers like Samsung Electronics and SK Hynix sharply rising, Apple appears to be exploring relatively cheaper alternatives in the form of ChangXin Memory Technologies (CXMT). On the 25th, Apple announced price hikes across its main product lines, stating: “Due to an abnormal surge in demand for memory semiconductors and storage devices, component prices have risen sharply.” MacBook Pro prices increased by 17.7% to $1,999; MacBook Air rose 18.2% to $1,299; iPad Air and iPad Pro saw price increases of 25.0% and 20.0%, respectively.

However, some analysts argue that Apple may not easily secure supplies from CXMT. Given that China is treating AI data centers and cloud infrastructure as strategic industries, it is unlikely that CXMT’s scarce DRAM capacity will be prioritized for foreign companies like Apple. A technology industry insider noted: “CXMT’s production capacity is likely to be absorbed first by domestic demand in China.”

Source: Chosun Ilbo

Original article: toutiao.com/article/1869482874243147/

Disclaimer: The views expressed in this article are those of the author alone.