Apple Renews Qualcomm Deal in Sign Its Own Modem Chip Isn’t Ready

  • Pact between the companies had been scheduled to end this year
  • The iPhone maker has been trying to create its own components
WATCH: Apple extends a chip deal with Qualcomm.Source: Bloomberg
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Apple Inc. is extending an agreement to get modem semiconductors from Qualcomm Inc. for three more years, a sign that its ambitious effort to design the chips in-house is taking longer than expected. Qualcomm shares surged on the news.

The new pact will cover “smartphone launches in 2024, 2025 and 2026,” Qualcomm said in a statement Monday. The companies’ agreement had been set to end this year, and the latest iPhone — due on Tuesday — was expected to be one of the last to rely on the Qualcomm modem chip.