Tencent (HKG:0700) and ChangXin Memory Technologies, or CXMT, signed an over 20 billion-yuan chip supply deal, Reuters reported citing three people familiar with the matter.

The deal, said to have a term of three to five years, involves CXMT's supply of DRAM chips for servers, according to the Monday report.

Chinese memory chipmaker CXMT is also reportedly in talks about similar agreements with other major internet companies in China.

Neither Tencent nor CXMT immediately responded to MT Newswires' requests for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)