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Rumor: Amazon interested in buying Texas Instruments’ mobile chip division

We know that Texas Instruments’ OMAP mobile processors are very widely used by many smart phone and tablet manufacturers around the world, Amazon is one of them. What do Amazon put those OMAP chips into? Well, the company has its own line of Kindle Fire tablets, which run on Texas Instruments’ OMAP processors. There are obviously other smart phones and tablets in the market which run on the same chips.

Earlier this month, there was a report that the chip manufacturer, Texas Instruments, in planning to expand its production of chips to other sectors including industrial, automotive and etc. Given the fact that its chips are one of the most widely used chips in the mobile devices market, the company wants to expand its operation range and also the profit. But there is very tough competition for the chip manufacturer when it comes to the smart phone and tablet processor market from companies such as Apple, Samsung, Qualcomm, Nvidia, and others.

Today, there is another news from the Israeli financial newspaper, Calcalist, that Amazon, the online retailer and the company behind one of the best selling tablets in the world, the Kindle Fire, is interested to buy out the mobile chip manufacturing division of Texas Instruments. This sounds a bit shocking to me, at least. This is because the online retailer in no way into manufacturing processors for mobile devices. But it does design and manufacture its own hardware, such as the Kindle line of ebook readers and the Kindle Fire tablet. But the fact that the company would buy out an entire division just for that reason is not really a wise decision.

If at all this rumor turns out to be true, Amazon might be looking into looking into entering a new territory and competing there as well. Ubergizmo writes, “When asked by Calcalist about the rumors, Texas Instruments’ spokeswoman replied by saying that the company refrains from commenting on rumors.” So we can’t be entirely sure of what is going on.

Source: Ubergizmo

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