AMAZON BUILDS CUSTOM CHIPS FOR ECHO, FIRE TV

Amazon's top hardware executive told CNBC that designing proprietary chips for "critical" consumer devices is a key focus area. The custom silicon approach covers Echo smart speakers and Fire TV devices, enabling the company to optimize performance while reducing reliance on third-party processors. The initiative aligns with Amazon's broader AI ambitions. Panay outlined plans to experiment with AI-enabled gadgets that leverage custom hardware to deliver on-device processing capabilities. This approach allows Amazon to maintain tighter control over product development and user experience. Custom chip development has become standard practice among major tech companies. Apple, Google, and Microsoft have all invested heavily in proprietary silicon for smartphones, tablets, and cloud services. Amazon's move signals confidence in its hardware roadmap and commitment to vertical integration across its device portfolio.