Microchips

Apple-Qualcomm deal reshapes U.S. chip business

Qualcomm logo with an airpod
Illustration: Rebecca Zisser/Axios

Apple's surprise deal with Qualcomm not only resolved one of the biggest legal disputes in the tech industry, but changed the balance of power in the chip industry.

What's happening: Just hours after announcing the settlement — which included a multiyear agreement for Qualcomm to supply chips to Apple — Intel said it was scrapping plans to release a 5G modem chip next year.

Intel pleads for U.S. backup in the chip race

Photo of a man holding up a computer chip to a light
An Intel technician in Costa Rica, 2000. Photo: Gilles Mingasson/Liaison/Getty

One of the most important and overlooked arenas of high-stakes tech competition is the global race among companies and nations to invent and manufacture the brains of future technologies — a rivalry for the commanding heights in advanced computer chips for artificial intelligence.

What's happening: For decades, U.S. companies have held the lead in chips. But now, they are losing ground. America's biggest chipmaker says Chinese companies could catch up with U.S. chip advances within 5 years.