SEMIKRON and Danfoss partners for Power Electronics

SEMIKRON-Danfoss (Silicon Power) is investing significantly in innovation, technology, and capacity to enable customers’ future growth plans.

The two global, family-owned technology leaders in Power Electronics will join forces in a new joint business called SEMIKRON-Danfoss, with Danfoss being the majority owner. An existing workforce of more than 3,500 dedicated power electronic specialists, the new partnership will provide world-class technology expertise as the leading partner in Power Electronics.

The merger comes with a firm commitment to future investments, paving the way for green growth and a more sustainable, energy efficient and decarbonised future. They will be a central enabler of this transition. Also to create a joint business specialised in Power Electronics focusing on power semiconductor modules.

The electrical power will be in the future the most important energy source. The power semiconductor module is at the heart of all power electronic solutions. The module is built of power semiconductors that makes it possible to convert and control the electrical power.

With the rise of e-mobility, the demand for electric vehicles is expected to increase by 30 percent each year over the next years. This speaks to the enormous growth potential of power modules as they are a key component for powering the electric motor and in vehicle chargers.

Industrial motors are consuming 50 percent of electrical energy in the world and only 20 percent of these motors are equipped with variable speed motor controls, leaving a large untapped potential to improve energy efficiency and reduce CO2 emissions. The power module is the key component in any variable speed control for electric motors.

The ongoing global transition aiming at replacing fossil fuels by improving energy efficiency and ambitious use of renewables also increases the demand for power modules. The power module is critical in all solar installations and all wind turbines to enable the power conversion to grids and energy storage.

This partnership will leverage its strong core business in industrial- and renewable power module applications and will utilise the partnership to target a leading position in Automotive power modules. They will set the trend and drive the technology shift into Silicon Carbide solutions in both industrial and automotive applications.

The new joint business SEMIKRON-Danfoss will be managed by one common leadership team. The joint business will be operated in the accustomed manner, retaining existing production facilities, customer and supplier relationships and distribution channels.

SEMIKRON-Danfoss will retain the two main locations in Germany, Nuremberg and Flensburg. The current factories and sales offices of Semikron and Danfoss Silicon Power will continue operations as usual.

Danfoss, President & CEO, Kim Fausing, said “The new SEMIKRON-Danfoss builds on a strong long-term partnership and more than 90 years of combined technology leadership in Power Module packaging, innovation, and customer application expertise. With electrification driving the green transition, SEMIKRONDanfoss aims to become the preferred decarbonising partner for customers. We have the passion, competences and technologies to more than double our business in five years.”

SEMIKRON CEO Karl-Heinz Gaubatz added “By combining SEMIKRON’s expertise as a pioneer for semiconductor technology with more than 70 years of experience in the development of top-class power modules and systems and the strength, innovativeness and fast-paced operations of Danfoss Silicon Power and the Danfoss Group we are positioned ideally to become one of the strongest players in power electronics.”