Amazon is developing custom end-to-end silicon for its Echo and Fire TV hardware. Panos Panay, head of devices and services, confirmed the shift toward in-house design for critical consumer electronics.

The new chips will run artificial intelligence features directly on devices rather than in the cloud. This transition aims to provide faster processing speeds and improved data security.

The strategy allows for tighter hardware and software integration, similar to the model used by Apple. Amazon will continue to use chips from partners like Qualcomm while expanding its use of proprietary AZ3 and AZ3 Pro silicon.