Qualcomm said on Monday it had signed a deal with Apple to supply 5G chips until at least 2026, at a time when the iPhone maker faces increased challenges in China and looks to reinforce its supply chains elsewhere, reports the South China Morning Post. The deal extends a relationship worth billions of dollars to Qualcomm for at least three years beyond what was expected and indicates Apple is not rushing out its own modem, despite moving all its computers to processing chips of its own design.
Qualcomm shares were up 4% in early afternoon trade. The company is the leading designer of modem chips that connect phones to mobile data networks. Apple shares rose 0.5%.
San Diego, California-based Qualcomm previously signed a chip supply deal with Apple in 2019, after the two companies settled a protracted legal battle.