FPT seeks to enter auto industry by buying 'any' automotive technology company

By Minh Son   April 10, 2024 | 08:09 pm PT
FPT seeks to enter auto industry by buying 'any' automotive technology company
FPT Corp chairman Truong Gia Binh speaks to shareholders at the company's annual general meeting on April 10, 2024. Photo courtesy of FPT
Tech giant FPT Corp wants to buy “any automotive technology company” as it seeks to enter an auto industry it sees as not balancing machines and software.

Chairman Truong Gia Binh told shareholders at the company’s annual general meeting Wednesday that mergers and acquisitions are among FPT’s priorities, especially in the auto industry.

The global auto industry is now "confused" as traditional manufacturers make products that are "too mechanical" while electric vehicle companies focus too much on software, he said.

The industry needs a company that understands both software and auto manufacturing, he said.

"This is a rare opportunity. They need companies that understand cars, software and security."

FPT is capable of handling the technology and now needs to acquire an automaker, he added.

It established FPT Automotive last year to provide software solutions to automakers, hired 1,500 engineers and targets revenues of US$1 billion by 2030.

FPT has been active in the M&A market, acquiring stakes in four tech companies in the U.S. and France last year and buying out Japan’s Next Advanced Communications this year.

The company, which reported overseas revenues of $1 billion from IT services last year, has set its sights on more acquisitions in South Korea, Singapore and Europe.

This year it targets total revenues of VND61.85 trillion ($2.47 billion) and pre-tax profits of VND10.88 trillion, both 18% higher than in 2023.

It aims to expand its semiconductor, AI, cloud, and cybersecurity offerings.

It has received orders to deliver 70 million chips by 2025, which would generate revenues of around $10 million, deputy CEO Nguyen The Phuong said.

FPT designs the chips and hires foundries in Taiwan and Japan to make them. The microchips would be sold at reasonable price, he added.

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