CXMT secures $3B memory deal with Tencent ahead of blockbuster IPO

Key Facts

1Chinese memory chipmaker ChangXin Memory Technologies (CXMT) has signed a long-term supply agreement with Tencent Holdings worth over 20 billion yuan ($2.94 billion) ahead of its blockbuster stock market debut, according to three sources.

In a move that underscores the deepening integration of China's tech giants, memory chipmaker ChangXin Memory Technologies (CXMT) has signed a long-term supply agreement with Tencent Holdings worth over 20 billion yuan ($2.94 billion), according to three sources familiar with the matter. The deal comes ahead of CXMT's anticipated blockbuster initial public offering, providing a strong revenue anchor and validating its technology in the eyes of investors.

Tencent shares traded at HK$428.20 at the close on June 29, 2026, with a session high of HK$432. The supply deal signals Tencent's commitment to securing domestic memory chips amid rising AI demand and geopolitical tensions. CXMT's IPO is expected to be one of the largest in China this year, and the Tencent contract could boost its valuation significantly. For context, China's semiconductor self-sufficiency drive has accelerated, with memory chip output growing over 20% year-on-year in recent quarters, according to industry data.

For Tencent, the deal ensures a stable supply of memory for its cloud and data center expansion, aligning with its AI infrastructure buildout. Investors should watch Tencent's upcoming earnings for any update on capex guidance. The stock's recent range between HK$432 and HK$415 suggests resistance near the upper end. The broader semiconductor sector remains supported by policy tailwinds in China, but global trade uncertainties persist.