Amazon is in the late stages of talks to take over Texas Instruments’ mobile chip arm, it was reported by Israeli financial newspaper Calcalist.
If successful, the acquisition would position Amazon, which produces tablets and is expected to enter the smartphone arena, as a more threatening competitor to Apple and Samsung, both of which have their own mobile processor divisions. The takeover would grant the online retailer an additional advantage in its bid to be more aggressive in the consumer electronics market.
Financial details about the deal were not confirmed, but the newspaper pegged the acquisition’s potential value in the billions of dollars.
There is much doubt as to whether, or to what extent, Amazon is prepared to become involved in semiconductor manufacturing, with Gartner analyst Carolina Milanesi telling Reuters it was unlikely that the online retailer would “become that intimately involved with hardware.”
Texas Instruments recently announced plans to slow its production of smartphone- and tablet-targeted OMAP chips, which are used in Amazon’s Kindle tablets, and focus instead on larger markets like the automotive industry.
Both companies have declined to comment.
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