Danfoss Silicon Power and SEMIKRON merge to establish joint business in Power Electronics

April 7, 2022 12:57 pm

The transaction is subject to regulatory approvals in several countries and is expected to close no later than Q3 2022.

SEMIKRON and Danfoss Silicon Power have announced a merger to create a joint business specialised in Power Electronics focusing on power semiconductor modules. With an existing workforce of more than 3,500 dedicated power electronic specialists, the new SEMIKRON-Danfoss 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, and energy efficient and decarbonised future. SEMIKRON-Danfoss will be a central enabler of this transition.

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 make 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 renewable 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.

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, 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.”

SEMIKRON CEO Karl-Heinz Gaubatz added: “This really is an exciting moment. 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.”