Qualcomm has officially extended its global patent licensing agreement with Apple. The new arrangement is scheduled to take effect on April 1, 2027, ensuring continued royalty payments for the semiconductor company.

This deal follows a long history of cooperation between the two firms, which began with a 2019 settlement that resolved years of legal disputes. Apple previously extended the existing contract in January 2024, pushing its expiration to March 2027.

The agreement covers Qualcomm’s wireless technology patents, which are essential for 5G connectivity. These licensing fees remain a critical revenue stream for Qualcomm, especially as Apple moves toward using its own in-house C-series modem chips in iPhones.

Qualcomm is currently diversifying its business model to reduce reliance on modem chip sales to Apple. The company aims to reach $5 billion in revenue from the data center market by fiscal 2027 and is expanding its Snapdragon Digital Chassis platform in the automotive sector.