CXMT signs long-term supply deal with Tencent worth over 20 billion yuan

Reuters reported, citing three people familiar with the matter, that the memory chip agreement was reached ahead of the Chinese manufacturer's closely watched IPO.

Summary

Chinese memory chipmaker CXMT has signed a long-term supply agreement with Tencent Holdings worth more than 20 billion yuan, or about $2.94 billion, according to a Reuters report citing three people familiar with the matter. The deal was reached ahead of CXMT's closely watched IPO, linking a major domestic chip supplier with one of China's biggest technology groups at a time when large pre-listing commercial contracts can help underscore demand and revenue visibility.

Terms & Concepts
  • IPO: initial public offering of shares
  • supply agreement: contract for long-term product deliveries