Qualcomm (QCOM) has announced a new deal that will see it supply fifth generation (5G) wireless internet microchips to Apple (AAPL) for its various electronic devices until at least 2026.
Qualcomm is the leading designer of “modem chips” that connect smartphones such as Apple’s popular iPhone to mobile data networks.
San Diego, California-based Qualcomm first signed a supply deal with Apple in 2019. That agreement ends later this year.
But under the new deal that has just been announced, Qualcomm will continue to supply Apple with needed microchips for its phones until 2026. The value of the new deal was not disclosed.
Qualcomm added that a patent licensing deal it signed with Apple in 2019 remains in place. That deal expires in 2025, but the companies have an option to extend it by two years.
Apple is scheduled to unveil its new iPhone 15 on September 12, and that device is expected to use Qualcomm designed microchips.
Qualcomm’s stock rose 5% in premarket trading on news of the deal with Apple. The company’s share price has declined 20% over the last 12 months.
Apple’s stock has risen 9% in the past year to trade at $178.18 U.S. per share.
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