According to the latest news, for its hardware networking switches, Amazon is working on a custom silicon chip which will help make the company’s internal infrastructure as well as its AWS (Amazon Web Services).
The Information reported that the chip is the result of its 350 million US Dollar acquisition of Israeli chip-making firm, Annapurna Labs. Amazon acquired the Israeli chip-making firm back in 2015. Working on building the chips for its switches would also help Amazon to solve its bottlenecks and infrastructure issues. Amazon could make the chip even more useful if it also makes custom-built software.
As of now, though Amazon is trying to develop new chips itself, it relies on Broadcom for the silicon that powers these chips. It is somewhat clear that Amazon is looking forward to getting complete control by building its own silicon chips. In simple words, with the help of its self-developed chips, Amazon might be able to offer some exclusive services that it had planned previously but was unable to offer.
Note that currently, Amazon developing its own networking chip is still an unconfirmed report so it should be taken with a pinch of salt. This is not the first time that Amazon is making its own custom silicon product. Previously, Amazon partnered with MediaTek to create a chip for its Echo smart speakers. These chips made Amazon’s Alexa voice assistant respond faster.