Amazon tipped to buy a bit of Texas Instruments -

The dark satanic rumour mill has manufactured another hell on earth yarn which claims that the retail book seller Amazon is close to buying Texas Instruments’ OMAP chip division.

The cunning plan appears to be to bring chip design for its Kindle tablets in-house, and the move will help TI refocus on embedded systems.

Calcalist reports that all this follows TI’s public distancing from its own phone and tablet chip business.

Things have not gone well in that arena thanks to stiff competition from Qualcomm, and Samsung. If Amazon does buy TI's OMAP operations it could leave Barnes & Noble in a tricky situation because its Nooks use TIs’ processors.

The potential acquisition will set Amazon back a few billion and will give TI the cash to chase embedded chips, which it has singled out as more stable in the long-term than the highly competitive phone/tablet processor market.

It would also be a case of Amazon copying Apple in developing chips tweaked specifically for its own purposes. It could mean cheaper chips for the Kindle too.