The analyst expects MediaTek (ticker 2454) to be negatively impacted as Amazon shifts its processor sourcing in-house, reducing external procurement.
Amazon plans to move away from externally sourced processors for its consumer electronics and adopt a customer-owned tooling model, which will reduce demand for MediaTek's processors.
MediaTek will take a major hit. "Amazon's own-brand consumer electronics, including Kindle, Fire TV, Echo, Alexa-enabled products, Blink, and Ring, currently use externally sourced processors. To optimize its cost structure, Amazon plans to gradually shift away from external sourcing and adopt a COT model similar to the one used for AI chip Trainium, taking more control of processor development in-house."
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