Amazon.com – the world's largest Internet retailer are in talks to buy the mobile chip business of Texas Instruments according to Calcalist, the Israeli financial newspaper.

The newspaper reported today that the move would be very beneficial for the giant retailing chain, as they would make their own chips for upcoming tablets and smartphones. There is no accurate amount of money tied to the takeover, but it would be in the ‘billions'.

If Amazon could make their own chips, it would put them in a stronger position against Samsung and Apple who also design their own hardware.

Reuters add “Gartner analyst Carolina Milanesi told Reuters she doubted whether Amazon wants to ‘become that intimately involved with hardware'”.

Texas Instrument chips are already used in Amazon's Kindle Fire tablet so the move would be straightforward enough for both companies in regards to continuing to support the Kindle range of devices.

Kitguru says: Amazon to become a major hardware player in the coming years?

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