Samsung, SK hynix, and Micron can continue to rake in the profits during the AI boom, but CXMT is slowly gaining traction and has been under the eye of the industry, particularly as Apple is reportedly attempting to ink a deal with the Chinese memory manufacturer by attempting to get its name crossed off the U.S. Entity List. A potential deal between the Cupertino firm and CXMT could materialize, and it’ll be a period of prosperity for the latter, as a new report states that a single deal has brought in $3 billion.
Tencent and CXMT have inked a multi-billion-dollar deal, showing the heights the manufacturer can reach if a partnership with Apple forms
The Chinese DRAM maker has witnessed a mammoth 700 percent year-over-year increase in revenue for the Q1 2026 quarter, generating 50.8 billion ($7.45 billion) while pocketing 25 billion yuan in profit ($3.67 billion). This is an exceptional showing from the manufacturer, which just a year ago recorded a loss of 1.6 billion yuan, or $234.6 million. According to Reuters, CXMT has just formed a $3 billion deal with Tencent for three years, with another source claiming that the partnership will remain intact for five years.
The details mention that Tencent will source the memory chips for servers to power cloud computing, databases, and AI workloads. To ensure that CXMT enjoys a stable revenue stream, it has formed a Long-Term Agreement (LTA), though it’s unconfirmed if the manufacturer will also supply Tencent with High-Bandwidth Memory (HBM), a primary component for AI chips. Seeing as how CXMT has generated $3 billion in earnings from a single deal, imagine the heights the company could reach if Apple brings it on board as a supplier?
With the iPhone maker paying $145 for a single 12GB LPDDR5X module, Apple has pretty much accepted that paying a premium for these parts will be the norm for several years. Its motivation of bringing CXMT into the fold has more to do with minimizing DRAM shortage risk rather than lower prices and boosting supply, at least according to TF International Securities analyst Ming-Chi Kuo.
CXMT can also use this crisis as an opportunity to etch its name as a reliable Apple DRAM supplier, securing a similar LTA that it made with Tencent. However, we shouldn’t be surprised if priority is still given to AI companies due to the sheer volume of orders. However, with the amount of iPhone 18 shipments expected to be recorded later this year, CXMT will surely miss out if it doesn’t seize this opportunity, but that’ll only matter if Tim Cook can convince the U.S. administration to get the ball rolling.
News Source: Reuters
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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