Citing unnamed tablet PC component suppliers, Taiwan-based DigiTimes also said that Amazon is expected to demand up to 2 million touch-panel displays from suppliers in the August-September period.

The tablet report on Amazon is surprising because the online retailer hasn't announced a tablet yet, and has thus far focused on selling its low-cost, black-and-white Kindle e-readers. The online retailer did not respond to a request for comment.

Rumors have circulated that Amazon , code-named Coyote and Hollywood, both powered by Nvidia processors. The the entry-level Coyote would run a dual-core Tegra 2 chip, while the more powerful Hollywood would run a quad-core T30 Kal-El processor with a 500% performance boost over Tegra 2.

Nvidia showed a running the quad-core Kal-El in late May before the Computex trade show in Taipei.

The Tegra 2 is used in the Samsung Galaxy Tab, the LG Optimus and the Asus Transformer tablet computers.