Qualcomm will supply iPhone maker Apple with 5G modem chips until at least 2026, the company announced Monday.
Qualcomm previously agreed to a chip supply deal with the iPhone maker in 2019, after the companies settled a protracted legal battle.
Shares of San Diego-based Qualcomm are higher in midday trading. Apple shares are flat.
Qualcomm has not disclosed the value of the new deal, saying only that the terms are "similar" to its previous agreement.
Qualcomm will now build Snapdragon 5G Modem‑RF Systems for smartphone launches in 2024, 2025 and 2026, Qualcomm said.
"This agreement reinforces Qualcomm’s track record of sustained leadership across 5G technologies and products," the company said in a press release.
Qualcomm also said that a patent licensing deal signed with Apple in 2019, which expires in 2025, remains in place with an option to extend the agreement for two years.
Qualcomm said Monday that its financial projections will assume that only a fifth of Apple's iPhones will use its chips by 2026.
However, Qualcomm made a similar projection about its business with Apple in 2021 that turned out to be overly conservative, with iPhone 14 models released last year all using Qualcomm modems.
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Meanwhile, Apple has been developing its own modem technology and shelled out $1 billion in 2019 to buy Intel's modem unit.
Apple did not respond to FOX Business' request for comment on the deal.
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Reuters contributed to this report.
