Via a tweet from Bufo Calvin, here’s a potentially exciting rumor that is being reported today by the New York Times’ Nick Bilton and Brad Stone on their Bits technology blog:

In a sign that Amazon wants to upgrade its Kindle e-reader to compete head-on with the Apple iPad, Amazon has acquired Touchco, a New York-based start-up specializing in touch-screen technology, a person briefed on the deal said Wednesday.

According to Engadget, “the startup claims its interpolating force-sensitive resistance tech can be made completely transparent, works with color LCDs, and can detect ‘an unlimited number of simultaneous touch points’ as well as distinguish between a finger and stylus.”

There are a lot of cool Kindle developments coming our way in the next few months, but this acquisition strongly suggests that a little further out we may see a color touchscreen on the Kindle. Apparently the tiny Touchco staff is being merged with Amazon’s Lab 126 unit of Kindle engineers in Cupertino, CA.

Here’s a link to a few minutes of video on Touchco’s technology: