FPT and Smart Holdings form joint venture for Japan manufacturing sector

Published 27/08/2025, 03:06
FPT and Smart Holdings form joint venture for Japan manufacturing sector

NAGOYA, Japan - Global IT Corporation FPT, a $6.47 billion market cap technology company with robust revenue growth of 14.5% over the last twelve months, and Smart Holdings Co., Ltd. have established a joint venture called FPT Smart Technologies Japan Co., Ltd. (FST-Japan) to provide digital transformation solutions for Japan’s manufacturing industry, according to a press release statement. InvestingPro data shows the company maintains a healthy P/E ratio of 20.9x, suggesting reasonable valuation for its growth profile.

The new company, headquartered in Nagoya, will focus initially on the automotive sector. FPT has acquired a 49 percent stake in the venture, while Smart Holdings maintains a 51 percent ownership. According to InvestingPro analysis, FPT demonstrates strong financial health with an overall score rated as "GREAT," positioning it well for this strategic expansion.

FST-Japan aims to address growing demand for digital transformation in Japanese manufacturing, particularly in areas such as Software-Defined Vehicles, carbon neutrality, and Mobility as a Service. The joint venture will begin by working with a major automotive company before expanding to additional clients.

The companies expect the venture to generate approximately $20 million (¥3 billion) in business opportunities over the next five years. Key priorities include digitizing design drawings and helping manufacturers meet quality, cost, and delivery standards.

FPT brings technical expertise in AI and digital engineering to the partnership, while Smart Holdings contributes knowledge of Japan’s manufacturing industry and connections with automotive companies.

Do Van Khac, FPT Software Senior Executive Vice President and FPT Japan CEO, said the establishment is part of their long-term vision to advance digitalization within Japan’s industrial landscape.

FPT reported total revenue of $2.47 billion in 2024 and employs over 54,000 people across its core businesses. The company is scheduled to report its next earnings on September 3, 2025, which investors can track along with over 100+ financial metrics available on InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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