Amazon is reportedly in the late stages of negotiations to take over Texas Instruments' mobile chip arm for an undisclosed amount.

If successful, the Texas Instruments (TI) acquisition would bolster Amazon's position against Apple and Samsung, both of which have their own mobile processor units. The takeover would also help the online retailer in its efforts to be more aggressive in the consumer electronics market. Amazon already produces tablets, and is expected to enter the smartphone arena as well.

According to Israeli financial newspaper Calcalist (via Reuters), the acquisition likely amounts to billions of dollars. Financial details were not confirmed.

If negotiations result in an agreement, Amazon would become a direct competitor to Apple and Samsung Electronics. Amazon's Android-powered Kindle Fire tablet was widely popular, seizing over half of the market in just a few months, and the company's new Kindle Fire HD lineup shows signs of similar success. To keep prices low and stay competitive, however, the online retail giant had to rely on in-device advertising.

Texas Instruments said last month that it was planning to focus less on mobile devices and target industrial clients instead, such as car manufacturers. Shifting focus from products like smartphones to a broader market could lead to a more profitable and stable business. Meanwhile, the consumer mobile devices industry is a greatly competitive market, with manufacturers putting increased pressure on the supply chain to cut prices and keep thin profit margins. Texas Instruments is a big part of that supply chain.

The company pledged to continue supporting its customers such as Amazon, but its mobile application chip business would no longer invest in those customers' future roadmap for tablets and smartphones with the same enthusiasm.

While the acquisition of Texas Instruments would definitely put Amazon in a stronger position on the tablet market and likely pave the way for the company to make its own smartphone, some analysts remain reluctant. Gartner analyst Carolina Milanesi, for instance, told Reuters that she doubted whether Amazon would want to "become that intimately involved with hardware."

Amazon did not confirm plans to acquire Texas Instruments, and TI spokeswoman Whitney Jodry said the company does no comment on rumors, according to the Calcalist.