The news sent Qualcomm stock soaring more than 20 percent. Apple stock saw little change.
Apple and Qualcomm had been locked in a global, years-long legal battle over patent royalties. Qualcomm demands that companies license its patent portfolio before they can buy the company's chips. It's an unusual arrangement, and critics argue it is an abuse of Qualcomm's dominant position in the wireless chip market.
Apple filed suit in January 2017, accusing Qualcomm of "extortion." The Federal Trade Commission filed its own lawsuit against Qualcomm the same month.