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Qualcomm has extended its deal to supply 5G modems for Apple smartphones, a sign that the iPhone maker is still working to perfect its in-house technology.

Since 2018, Apple has been trying to build modems for its iPhones—controlling how its devices communicate with cellular networks. The plan is an extension of its multibillion-dollar effort to develop more semiconductor components in-house rather than relying on outside suppliers. .

Qualcomm said on Monday it would provide chips for Apple’s smartphones launched in 2024, 2025 and 2026. Terms of the deal were not disclosed, but Qualcomm said they were similar to the original deal struck in 2019.

“This agreement solidifies Qualcomm’s continued record of leadership in 5G technology and products,” the San Diego-based chipmaker said.

Apple is Qualcomm’s largest customer, accounting for nearly 25% of its revenue, and the iPhone 15 launched on Tuesday is expected to be one of the last phones to rely on its modems.

The two companies were locked in a series of high-profile intellectual property and contract disputes around the world before reaching an agreement in 2019. At the time, they said they had reached a “multi-year chipset supply agreement.”

A few months later, however, Apple acquired Intel’s smartphone chip business for $1 billion, accelerating its modem development plans.

Qualcomm’s new deal leaves open the possibility for Apple to gradually use its own chips in its smartphones over the next three years, if it’s ready.

Qualcomm said its long-term financial planning assumption is to supply 20% of related chips for smartphones launched in 2026.

Its in-house chip manufacturing project, known as Apple Silicon, has produced strong results in the iPhone’s core processors over the years. Recently, it has put these chips into its Mac computers, replacing Intel as the main workhorse of its desktops and laptops.

Qualcomm shares rose 8% in pre-market trading on Monday after the news broke, before giving up some of those gains. By late morning in New York, the stock was up 3%.

In May, Apple reached a multi-year deal with Broadcom worth billions of dollars covering other 5G components.

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