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Amazon may buy Texas Instruments' mobile chip business

News by Andrew Kameka on Monday October 15, 2012.

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Texas Instruments has hinted that it will move away from producing processors for smartphones and tablets, but Amazon, which relies on TI for its Kindle Fire tablets, may step in to purchase the division. TI has stated that it plans to shift its focus from mobile devices to developing embedded solutions for carmakers and other fields that may be more profitable than the highly-competitive mobile industry. It will not devote much attention to future smartphone and tablet manufacturers, which would put Amazon in a difficult position since it relies on TI's OMAP platform for its Kindle Fire products. Rather than purchase from another supplier like Qualcomm or NVIDIA, which could affect Amazon's costs and ability to maintain its design focus, Amazon is rumored to purchase TI's mobile division.

Israeli newspaper Calcalist reports that Amazon is in advanced talks to purchase TI's mobile chip-making unit. Details are scarce, but rumors suggest that Amazon may spend billions to acquire the division from TI. The move may be necessary to keep costs steady and reliable for the Amazon Kindle tablet line. Amazon's tablet strategy is to keep costs low to increase digital sales, and the OMAP platform is a crucial part of that strategy. The purchase would allow Amazon to ensure processor availability if TI chooses to abandon its mobile business.

source: Reuters

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Andrew Kameka
Andrew is based in Miami, Florida.

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