Apple is in the process of extending its chip supply agreement with Qualcomm for three more years, indicating Apple’s efforts to become self-sufficient in chip technology are lagging.
In a statement released on Monday, Qualcomm said it would “supply Snapdragon 5G Modem‑RF Systems for smartphone launches in 2024, 2025 and 2026.”
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The newest iPhone, set to be released on Tuesday (12 Sept), was planned to be the last model to use Qualcomm’s chips.
The agreement, signed in 2019, came at the end of a protracted legal battle over royalties on Qualcomm’s chip technology and was one of the biggest legal battles the telecoms industry had seen.
Apple objected to this “abusive licensing model”, refusing to pay the fees since 2017 on the grounds that they were anti-competitive, with Qualcomm in turn accusing Apple of stealing its intellectual property.
According to data collected by Bloomberg, Apple is Qualcomm’s largest customer, accounting for close to a quarter of its revenue.
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By GlobalDataQualcomm came under fire last month for its planned acquisition of Israeli semiconductor manufacturer Autotalks. After requests submitted by 15 Member States, the European Commission plans to assess the acquisition under EU Merger Regulations (EUMR), to discern whether it will affect trade within the single market and threaten competition.
Apple has been vying to produce its own modems since it bought Intel’s modem unit in 2019 for $1bn. The renewal of its agreements with Qualcomm marks a setback in its plans for self-sufficiency.
