A report on an Israeli website claims that Amazon is in serious negotiations to buy Texas Instruments’ mobile chip division. The firm announced last month that it was doing away with its chip operations and instead focusing on embedded platforms. It’s a logical step forward for the online retail giant with a sideline in hardware, as it means that Amazon will have direct influence on what goes into its Kindles, and, perhaps, its future smartphones.
If successful, the deal, which is expected to be worth billions of dollars, could pose problems for Barnes & Noble, whose Nook tablet uses TI chips. Amazon’s rivals in the tablet business, Apple and Samsung, are already ahead in the game, as they manufacture their own processors for their mobile devices.