Apple to buy 5G chips from Qualcomm until 2026 amid supply chain challenges in China
- The new deal suggests that Apple is not rushing out its own modem and is focused instead on strengthening its supply chain
- Qualcomm projects that only a fifth of Apple’s iPhones will use its chips by 2026
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 per cent 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 per cent.
San Diego, California-based Qualcomm previously signed a chip supply deal with Apple in 2019, after the two companies settled a protracted legal battle.
Under the accord announced Monday, Qualcomm said it will supply Apple with chips for phones that will come out each year until 2026. Qualcomm did not disclose the value of the deal, saying only that the terms are “similar” to its previous agreement.
Apple did not immediately respond to a request for comment.
