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Amazon looking to buy TI mobile chip unit

Posted: 16 Oct 2012     Print Version  Bookmark and Share

Keywords:smartphone chip  OMAP  Kindle Fire 

World's largest online retailer and maker of Kindle tablets Inc. is reportedly in talks to purchase the struggling smartphone chip business of Texas Instruments.

If an Israeli newspaper Calcalist is to be believed then the deal would probably be worth "billions of dollars," making Amazon a direct rival to Apple and Samsung, which also design their own chips.

Amazon is rumoured to be working on its own smartphone, and this buyout is seen as the company's major move towards achieving its dream.

However, Gartner analyst Carolina Milanesi said she doubted whether Amazon wants to "become that intimately involved with hardware."

It's time to move on...
TI decided to move away from smartphones and tablets and focus more on profitable segments. Read recent news.
 • TI abandons OMAP platform for smartphones.

Last month, TI announced its plans to abandon OMAP platform and smartphones. The 5th largest mobile chip maker in terms of revenues announced that it will shift its wireless investment focus from smartphones and tablets due to increased competition.

TI's chips are used in Amazon's Kindle Fire tablet. TI told investors that it would continue to support its customers. But its mobile application chip business, which supports features like video, will not invest in supporting its customer's future roadmap for tablets and smartphones to the same degree as before.

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