According to a report today, Amazon.com may acquired a mobile processor business. Texas Instruments and Amazon.com are in advanced talks for a deal. TI would sell their mobile chip business to Amazon.com.
Amazon.com already works with Texas Instruments for mobile chips that are used in their Kindle line of devices. Texas Instruments also sells mobile chips to Amazon.com’s competitor Barnes & Noble. It is unclear whether Amazon.com would continue to sell mobile chips to Barnes & Noble if they acquired the mobile chip business from Texas Instruments.
Texas Instruments made it clear that they wanted to sell their mobile processors division in a conference call with investors last month. The company said that the market was not broad enough for their goals. Texas Instruments had announced revenues of $342 million in their wireless processor business, which includes OMAP processors and wireless-connectivity chips.
Texas Instruments now has a major focus on competing with NVIDIA and Samsung over ARM-based mobile chips. However Amazon argued that OMAP processors built into their Kindle devices are comparable to the top chips from NVIDIA.