Amazon to Buy Mobile Chip Business from Texas Instruments

Now that Amazon is a vendor of own-brand products, however incapable of producing money they happen to be, it may as well acquire the facilities and manpower needed to make its own processors, which is precisely what it is seeking to do.

Amazon hasn't said anything officially yet, but an Israeli newspaper called Calcalist reports that the company is quite far enough along in negotiations with Texas Instruments.

Normally, Amazon wouldn't need to change anything in its relationship with the company. TI is the one that produces the chips used in the Kindle Fire tablets after all.

The situation changed late last month, when TI decided it wasn't making enough from mobile chips to bother continuing.

In other words, it plans to focus on embedded processors, while downsizing or closing off its mobile chip division.

Amazon is supposedly gunning for ownership of that division, even if it has to pay billions to get it.

Perhaps it is worried that switching to Qualcomm of NVIDIA solutions would affect its ability to keep the prices of its Kindle Fire line at the current low level. Whatever the reason is, the move should give it a pleasant feeling of self-sufficiency.