World’s biggest internet retailer, Amazon is in advance talks to buy Texas Instruments’ mobile chip business, an Israeli newspaper reports.
The financial daily Calcalist, reported on Monday that Amazon was in full pursuit to acquire TI’s chip business if the negotiations lead to an agreement, that is.
Amazon Inc which is now entering the smartphone industry, if acquires the chip business then it would become a direct rival to Samsung Electronics and Apple Inc. According to Calcalist, the valie of this deal would probably be in billions.
Just last month, TI had said that “it will shift its wireless investment focus products like smartphones to a broader market,” and according to Reuters that would include industrial clients such as carmakers where it will then profit more and further stabilize.
Carolina Milanesi, analyst at Gartner spoke to Reuters expressing her doubt if Amazon would want to “become that intimately involved with hardware.”
Although both companies have as yet not confirmed this news, TI’s spokeswoman even said that the company would not be commenting on rumors.
TI’s chips are used in Amazon.com’s Kindle Fire tablet. TI told investors it would continue to support its customers but its mobile application chip business, which supports features like video, will not invest in supporting its customers future road map for tablets and smartphones to the same degree as before.