Qualcomm extends Apple chip licensing deal from April next year
A long-running commercial relationship between Qualcomm and Apple is set to continue under an extended chip licensing agreement. The extension takes effect on April 1 next year and builds on a patent licensing framework established after the companies' 2019 legal settlement.
Highlights
- Qualcomm has extended its chip licensing agreement with Apple, effective April 1, 2025, under the framework of their 2019 settlement.
- Apple previously entered into a six-year global patent licensing deal with Qualcomm starting April 1, 2019, following a global legal dispute resolution.
- The licensing extension ensures ongoing stability in their supplier relationship, maintaining crucial patent and modem chip access for the smartphone sector.
Licensing extension under 2019 settlement framework
As reported by Reuters, Qualcomm says it has extended its licensing agreement for chips with Apple, with the new term becoming effective on April 1 next year. The companies do not respond to requests for comment on the agreement's details.The two groups' partnership has been shaped by a 2019 settlement that ended a two-year global legal dispute over wireless patent royalties and modem chip supply. They announced that truce in April 2019 as a U.S. jury trial between them was beginning in San Diego.
Implications for the mobile chip sector
Under the 2019 settlement, Apple made an undisclosed payment to Qualcomm, the companies dropped litigation worldwide and agreed to a six-year global patent licensing deal starting on April 1, 2019. That agreement also gave Apple an option to extend the license by two years.The extension signals continued stability in a key supplier and licensing relationship in the smartphone industry, where patent access and modem chip arrangements remain commercially important. It also preserves a framework that has governed the companies' dealings since the end of their earlier court fight.
In our earlier report on SoftBank’s $11.1 billion bond issuance, we covered how the group raised record high-yield funding to accelerate investments across AI, semiconductors and digital infrastructure, including a larger stake in OpenAI. We also noted that SoftBank’s growing use of debt markets was aimed at financing big-ticket deals spanning data centres, robotics and chip-related assets as it builds a broader AI-linked portfolio.
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