Amazon is gearing up for the launch of its massive battalion of Android tablets by the end of the year. According to industry sources, Amazon has an ambitious goal: ship 4 million tablets before the year is over. It’s ambitious, and Amazon has the power to achieve it.

That is why Amazon has already begun talks with touch panel manufacturers in Taiwan. According to DIGITIMES, Amazon has talked to manufacturers such as TPK Holdings, Wintek, HannStar Display and J Touch. Both TPK Holdings and Wintek also supply touch panels for Apple’s iPad, and have hesitated in committing to Amazon’s massive shipment order. TPK is concerned about capacity, while Wintek is expecting a tighter production schedule in the second half of the year. Both companies essentially found it hard to accommodate Amazon at this time.

Amazon is planning to start shipping its rumored tablets, codenamed Coyote (7-inch tablet) and Hollywood (10-inch tablet), starting in September. Rumor has it that the two tablets will pack NVIDIA Tegra processors–Tegra 2 for the Coyote, and Tegra 3 for the Hollywood. But, as Amazon has not yet officially revealed the specs, the Amazon tablets may also potentially carry other equally powerful processors such as Texas Instruments OMAP line of processors.

Amazon’s upcoming tablets are also rumored to come with competitive prices: US$350 for the Coyote and US$450 for the Hollywood.

Amazon needs about 2 million touch panels for the first batch of tablets due for release this coming September. That’s quite a tall order to touch panel manufacturers. Do you think Amazon will be able to pull this through?