[Edaily Reporter Lee So-Hyun ] It has been reported that Chinese memory chip manufacturer Changxin Memory Technology (CXMT) has signed a large-scale, long-term DRAM supply contract with Chinese tech giant Tencent. As demand for server memory grows amid the spread of artificial intelligence (AI), efforts to establish a domestic memory supply chain in China appear to be accelerating.

Reuters reported on the 29th (local time), citing multiple sources, that CXMT has agreed to supply Tencent with server DRAM worth 20 billion yuan—approximately 4.5 trillion Hanwha—over several years.

Depending on the source, the contract term is reported to be up to three years or up to five years. It remains unconfirmed whether high-value-added products, such as High Bandwidth Memory (HBM), are included in the contract.

CXMT is regarded as China’s leading memory manufacturer in the global DRAM market, which is dominated by SamsungElectronics(005930), SK hynix(000660), and Micron. According to market research firm Omdia, CXMT’s global DRAM market share rose to 7.67% in the fourth quarter of last year. This indicates that Chinese companies are gaining market share in a sector where the combined market share of the top three players—SamsungElectronics, SK hynix, and Micron—exceeds 90%.

CXMT is reportedly in discussions regarding similar supply partnerships with other Chinese internet companies. In its IPO prospectus, CXMT listed Tencent, Alibaba Cloud, ByteDance, Lenovo, and Xiaomi as major customers.

This agreement aligns with efforts by Chinese Big Tech companies to secure long-term supplies of memory required for AI servers and cloud infrastructure.

As demand for DRAM surges due to the proliferation of AI services, customers are working to secure stable suppliers. For Chinese companies, this also means increasing their reliance on domestically produced memory amid U.S. semiconductor restrictions targeting China.

CXMT is also accelerating its expansion of production capacity. According to Reuters, CXMT has broken ground on a new DRAM factory in Shanghai. Its existing Shanghai facility is reportedly focused on HBM packaging.

CXMT currently operates three 12-inch DRAM wafer fabs in Beijing and Hefei, Anhui Province. Its monthly wafer production capacity is estimated at approximately 300,000 wafers. Some projections suggest that once the new plant is fully operational, CXMT’s monthly production capacity could increase to 600,000 wafers.

Fundraising efforts are also underway. CXMT plans to raise 29.5 billion yuan (approximately 6.7 trillion won) through an initial public offering (IPO) this year. The funds raised are expected to be invested in expanding wafer production lines and advancing DRAM technology.

However, the technology gap and yield rates remain key challenges. Some sources report that CXMT is experiencing low yield rates with its DDR5 products. Many analysts also note that a technology gap persists with SamsungElectronics, SK hynix, and Micron in high-value-added memory segments such as HBM.

Industry observers believe that while CXMT’s rise is not yet significant enough to shake up the global memory market in the short term, it could pose a challenge to Korean companies in China’s server-grade general-purpose DRAM market.

In particular, if Chinese big tech companies increase their use of domestically produced memory, SamsungElectronics and SK hynix could face growing pressure on both prices and volumes for their general-purpose DRAM sales to China in the medium to long term.

On the other hand, some analysts suggest that Korean companies still hold a solid technological advantage in the HBM and high-performance server DRAM sectors, which are central to the AI semiconductor market. Observers note that whether CXMT’s pursuit will translate into a real threat depends on improvements in DDR5 yield, the acquisition of HBM technology, and the stability of large-scale mass production.