Amazon rumored to be interested in TI smartphone chip unit

Israeli newspaper Calcalist claims Amazon is in "advanced negotiations" to buy Texas Instruments' OMAP division. Amazon uses TI's OMAP SoCs in its Kindle Fire tablet, and buying the OMAP unit would give the online retailer more control over the processors inside its tablets.

Israeli business sheet Calcalist is reporting that Amazon is in "advanced negotiations" to snap up that part of TI's OMAP division, which currently supplies processors for the Kindle Fire and the Nook HD. The paper suggests the company is emulating Apple's purchases of chip designers in order to lower the price of future hardware -- which it currently sells at cost.

Texas Instruments recently revealed it would shift its focus from product like smartphone chips to a broader market where it is hoping for a more profitable and stable business. The company told investors that it would continue to support its clients, but that its OMAP division would not invest in supporting customers' future tablet and smartphone roadmaps to the same degree as before. Perhaps this news sparked Amazon's interest in trying to acquire TI's OMAP unit.

Source: Engadget