Rumor: Amazon in talks to buy TI mobile chip division bringing vertical business model more in line with Apple and Samsung

// October 15th, 2012 // Hardware

Texas Instruments TI logoRumors are circulating that Amazon is looking to buy Texas Instruments’ (TI) smartphone and tablet oriented OMAP chips division, bringing its tablet business model more in line with Apple and Samsung (who realize competitive advantages by manufacturing their own hardware). Recall that TI recently announced that it was exiting the smartphone and OMAP chip business and moving its focus to embedded platforms (particularly in the automobile and industry business segments). According to reports, Amazon is looking to “exert more control over the chips running its Kindle Fire tablets and smartphones it probably has in the works”. It is not known how this will impact Barnes & Noble, who use the TI chipsets in their own Nook book readers.

Reuters explains why TI is exiting the OMAP processor business:

“Texas Instruments has buckled under pressure from ARM-based mobile chip makers, like Nvidia and Samsung, which have been able to attract more mobile vendors with their perceived better performance. Amazon has argued that the OMAP processors built into its Kindle devices are on par with today’s top chips from Nvidia.”

Sources: CNET, Reuters, Business Insider

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