Amazon buys touch screen startup Touchco

Amazon is looking to enhance the Kindle in light of Apple's iPad launch

Amazon has invested in Touchco, a maker of touch screens, according to a report in The New York Times.

The move is widely seen as a bid to enhance the features of Amazon's Kindle e-book reader.

The Kindle is a big seller for the firm, although it has not revealed exactly how many it has sold, and is likely to face stiff competition from the recently launched Apple iPad.

Amazon said in its latest financial results statement that it is readying a version of its reader software for the iPad, but it is looking increasingly likely that the company will improve the features on its own device at the same time.

Touchco makes relatively cheap screens that could add multi-touch features to the Kindle. Amazon has not officially announced the purchase, and a call to the UK press office yielded no comment.

Meanwhile, a visit to the Touchco web site shows that the company is no longer trading.

"Thank you for your interest in Touchco. As of January 2010, the company is no longer doing business," the site says.

The company has six employees, according to the report, all of whom will be incorporated into Amazon's hardware division.