Amazon is focusing on embedding its own chips in personal devices, CNBC reported on Wednesday.

Panos Panay (파노스 파나이), head of Amazon Devices & Services, appeared on CNBC's podcast "The Tech Download" to share the company's hardware semiconductor strategy and said, "Amazon makes the chips it launches end-to-end."

The chips are installed in the Echo Show 8, Echo Show 11 and Fire TV. Amazon unveiled AZ3 and AZ3 Pro chips for running on-device AI models in October last year.

Panay said some key devices are developed in-house from chip design through completion. He said Amazon must consider end-to-end hardware delivery to properly connect hardware and software and provide ambient in-home experiences in the safest way. He added that the company still uses external chips such as Qualcomm.

The in-house chip strategy is part of efforts to improve on-device AI performance. Amazon formally launched its voice assistant "Alexa Plus" in the United States this year. Alexa Plus handles complex queries and tasks and learns context and user patterns. It serves to tie together various hardware, from Ring doorbells to Echo devices and Fire TV.

Panay also laid out his view on how devices may be used in the future. He said, "We may be moving away from a world centered on apps and screens," adding that conversation and context will become more important for AI assistants.