San Francisco — Apple  and Qualcomm agreed to end a two-year legal battle over billions of dollars of technology licensing fees that had threatened to reshape the chipmaker’s business. Qualcomm’s shares jumped on the announcement. Apple will make a one-time payment to Qualcomm and the two entered into a multiyear-chip supply and licensing agreement, effective April 1, in which the iPhone maker will pay royalties to Qualcomm, the companies said Tuesday in a statement. All the litigation between the companies around the world will be dismissed, according to the statement. No amounts related to the payments or fees were given. Qualcomm said it expects the agreement to add $2 per share to its earnings when it begins shipments of chips to Apple. While it is not clear how much Qualcomm gave up in concessions to Apple in terms of payments and rates, the settlement lets it continue one of the most profitable businesses in the $400bn semiconductor industry. Apple was the remaining holdout fr...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now