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Danfoss-Semikron merger creates power electronics giant
The power semiconductor manufacturers Semikron and Danfoss Silicon Power are merging to create a joint business focusing on power semiconductor modules for use in variable-speed drives and other applications such as electric vehicle chargers and renewable energy power converters. With a workforce of more than 3,500, the new Semikron-Danfoss will be owned by the current owner-families of Semikron and the Danfoss Group, with Danfoss being the majority shareholder. They say they plan to invest “significantly” in innovation, technology, and capacity with the aim of at least doubling the size of the business within five years.
The merged business will be managed by a common leadership team and will keep the two main locations in Nuremberg and Flensburg in Germany. The current factories and sales offices will continue to operate as before.
“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,” says Danfoss’ president and CEO, Kim Fausing. “With electrification driving the green transition, Semikron-Danfoss 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.”
“This really is an exciting moment,” adds Semikron CEO, Karl-Heinz Gaubatz. “Based on close, trusting conversations over the last months we have identified that Semikron and Danfoss are a unique fit with complementing assets, a strong team and shared values. 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.”
Semikron, founded in 1951, has its headquarters in Nuremberg, and a staff of more than 3,000 working in 24 subsidiaries worldwide, with production sites in Germany, Brazil, China, France, India, Italy, Slovakia and the US. It manufactures power modules and systems primarily with outputs from 2kW to 10MW for applications including motor drives, power supplies, renewable energy power conversion and electric vehicle charging.
Danfoss Silicon Power has been developing customised IGBTs and SiC power modules and power for more than three decades. It has a cleanroom manufacturing facilities in Flensburg, Germany, and Utica, New York state, with a combined floor area of 9,000m².
To cater for the growing demand for silicon carbide (SiC) power modules, Danfoss has established an SiC centre of excellence in Munich, which includes a 600m² research lab. It supports the development of customised power modules and power stacks.
The merger is subject to regulatory approvals in several countries and is expected to close no later than the third quarter of 2022.
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