Even as Apple expands their ability to create and manufacture their own mobile chips, Amazon seems to be wanting to do the same for its Kindle (Fire) division.
Reuters reports the following:
If negotiations lead to an agreement, Amazon, which makes tablets and is expected to enter the smartphone industry, would become a direct rival to Apple and Samsung Electronics, which also designs their own chips. The value of any deal will probably be billions of dollars, Calcalist said.
Texas Instruments said last month it will shift its wireless investment focus from products like smartphones to a broader market, including industrial clients such as carmakers, where it is hoping for a more profitable and stable business.
Interesting, particularly considering that Amazon is quickly becoming a consumer electronics manufacturer that can rival Apple, with its Kindle Fire line of devices. Amazon, if this deal went through, would be joining an elite group of corporations – Apple, Samsung, Nvidia, Intel, and Qualcomm being the largest – who have the ability and expertise to create such chips in house. Such an ability is important, particularly to have an edge over the competition.
Texas Instruments’ chips, despite being fairly popular, have historically lagged in performance behind that of Samsung, Nvidia, and Qualcomm (and now Apple, with its in-house A6). Texas Instruments has expressed interest in selling their chip division, which has been struggling.