(Reuters) – Qualcomm on Monday mentioned it had signed a brand new take care of Apple to provide 5G chips to the iPhone maker till no less than 2026. Qualcomm, whose shares rose greater than 8% in premarket buying and selling, is the main designer of what are generally known as modem chips that join telephones to cellular information networks.

The San Diego, California-based agency beforehand signed a provide take care of Apple in 2019, after the 2 firms settled a protracted authorized battle.

That chip provide settlement ends this yr, that means that the iPhones that Apple is anticipated to announce Tuesday could be the final telephone debut beneath that settlement.

Under the deal introduced Monday, Qualcomm mentioned it’ll provide Apple with chips for telephones that may come out annually till 2026. Qualcomm didn’t disclose the worth of the deal, saying solely that the phrases are “similar” to its earlier settlement.

Qualcomm additionally mentioned {that a} patent licensing deal it signed with Apple in 2019 stays in place. That deal expires in 2025, however the firms have an possibility to increase it for 2 years.

Apple is working by itself modem expertise and spent $1 billion to purchase Intel’s modem unit in 2019. Apple has not mentioned how shortly it plans to ramp up the usage of its personal chips.

Qualcomm on Tuesday mentioned that its monetary projections will assume that solely a fifth of Apple’s iPhones will use its chips by 2026. However, Qualcomm made an identical projection about its enterprise with Apple in 2021 that turned out to be overly conservative, with iPhone 14 fashions launched final yr all utilizing Qualcomm modems.

(This story has been edited by News18 employees and is revealed from a syndicated news company feed – Reuters)