Amazon Taps Alchip for In-House Chips, Threatening MediaTek Consumer Electronics Orders

Amazon has long used MediaTek SoCs in consumer devices including the Kindle and Fire TV. The company now plans to shift to a customer-owned tooling, or COT, model for in-house chips to help fund its heavy AI infrastructure spending and improve its cost structure. The move would give Amazon greater control over chip specifications and its supply chain while reshaping existing processor procurement arrangements.

Amazon plans to begin using the COT model for processors in product lines including the Kindle and Fire TV in 2027, with Alchip Technologies serving as the exclusive provider of back-end design and testing. The project’s value and order volume have not been disclosed. If mass production proceeds as planned, MediaTek’s longstanding consumer electronics SoC orders would be directly affected.