Amazon is reportedly in the process of buying the mobile division of Texas Instruments Inc., the company that produces the processors seen in the Kindle Fire range of tablets.
According to Israeli financial newspaper Calcalist, Amazon is in talks to buy out the division of Texas Instruments that supplies the TI CPU chips seen in Amazon's Kindle Fire tablets. The paper says that the deal could cost Amazon billions of dollars.
Recently, a report suggested that Texas Instruments was looking to get out of the smartphone and tablet business in favour or re-focusing its efforts on other sectors, including the automotive industry.
Texas Instruments used to be known for these...
Although not the number one producer of smartphone and tablet processors, Texas Instruments has made the CPUs for several big-name products over the past couple of years. Luminaries include the Motorola Xoom 2, the Archos G9 101 and Motorola Razr XT910.
... but now it makes these
If the Amazon-TI buy-out goes ahead, it represents a serious move in focus towards hardware-marking that could be considered a confirmation of Amazon's intention to produce its own smartphone. Rumours of an Amazon-branded phone resurfaced in July, suggesting that the company had already chosen Foxconn as a manufacturing partner. Foxconn produces much of the hardware that goes into Apple's iPhone devices.