Rumor: Amazon in talks to buy TI's OMAP division

Less than a month ago, Texas Instruments revealed a change of focus for its processor division, which makes the OMAP chips used in a range of smartphones and tablets. Instead of concentrating on those product categories, Senior Vice President of Embedded Processing Greg Delagi told investors the company would devote more effort to wooing industrial clients like automobile makers. Delagi expects slower growth in the embedded market, but he anticipates it will "generate a more stable long-term business" than competing in the wireless device market.

If the latest rumor is to be believed, there might be one player who is happy to chase that purportedly shorter-term wireless growth. According to Israeli site Calcalist, Amazon is in talks to buy TI's OMAP division. The deal could be worth billions, the site says, and Gizmodo points out that Calcalist's sources have some credibility; they were the first to reveal Apple's takeover of Anobit last year.

There's good reason for Amazon to be interested in picking up the OMAP division, of course. The company's Kindle tablets, including the latest HD models, all use Texas Instruments processors. Amazon has been widely rumored to be interested in making a phone, as well, and the OMAP line has certainly proven itself in that field. Bringing processor development in-house should help Amazon compete with Apple and Samsung, which design their own chips. The move would also give Amazon an important edge over device makers who source SoCs from other firms.

Tip: You can use the A/Z keys to walk threads.
View options

This discussion is now closed.