Building the hardware to fit the software: Kingston’s bet on powerful AI

Memory and storage hardware provider Kingston is ready to create the hardware needed to help run sophisticated AI applications. 

Although Latin America is crucial for California-based Kingston’s business, local economies are complex and volatile, which, in addition to price fluctuations, impacts sales, according to LatAm VP Carolina Maldonado.

Moreover, the US trade war could affect the entire industry.

In this interview, BNamericas talks to Maldonado about the main industry trends and the impact of AI.

BNamericas: What do you expect for the sector this year? 

Maldonado: We are confident that 2025 will be an excellent year for our memory and storage segments, based on several factors that will help us generate greater demand.

One of the most important ones will be AI. However, other factors will also impact our businesses, such as the transition from Windows 10 to Windows 11, which will significantly boost our segment as memory requirements change and cybersecurity [becomes more critical], which is a topic that has long been debated and is gaining increasing importance for both end users and businesses.

[Editor’s note: Microsoft will end support for Windows 10 in October.]

BNamericas: How is AI affecting the hardware business?

Maldonado: AI has revolutionized current hardware, driving the development of new technologies and accelerating demand for more powerful devices.

Devices and uses are not yet fully defined. In other words, they are evolving rapidly and this is generating positive momentum for the segment.

Computing devices and equipment require more RAM, and especially faster memory, to work with AI more efficiently, allowing us to be a key player.

At Kingston, we specialize in memory and storage, and these two components will have to keep pace with the evolution in performance and speed required by new devices. Kingston is ready, with RAM memory featuring new technologies such as CUDIMM and CAMM2 RAM that will support the hardware requirements for AI.

BNamericas: What are the company’s plans for Latin America?

Maldonado: Our plan for the region is to maintain the leadership and position that Kingston has built over the years. Latin America is a mature market with increasingly demanding users who are highly knowledgeable about different technologies.

We are leaders in SSD sales and see significant growth across the entire line in this segment. Additionally, we will have a major launch in this category in the first half of the year.

Another goal for this year is to continue growing our business in the high-performance line with Kingston FURY, memory and SSDs, which target the most demanding audiences, such as gamers, enthusiasts and, of course, AI.

BNamericas: Is it realistic to establish a semiconductor industry in Latin America as part of nearshoring?

Maldonado: Without a doubt, nearshoring can significantly benefit different segments. In fact, some countries are making progress in this regard, even offering incentives to attract these investments to the region to promote local talent. 

Our region is becoming a key location for manufacturers seeking to reduce their transportation costs and production times for sectors such as automotive and consumer device manufacturers. On the other hand, we must mention the challenges faced when implementing a nearshoring strategy: limited infrastructure, lack of specialized labor, lengthy processes and logistics issues, among others.

Although we don’t have manufacturing plans in the region, we have guaranteed availability and supply.

BNamericas: How might US tariffs affect the hardware industry?

Maldonado: In our case, the products that come to our region are made in Taiwan and, for the time being, are free of additional tariffs, as these are levied on products manufactured in the country of origin.

However, this could impact us all, and the issue remains complex. Although our products are not directly affected now, we will be indirectly affected by the likely increase in the cost of devices that use Kingston products, by the disruption in the supply chain for these devices, and by fluctuating exchange rates.