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SEMIKRON and Danfoss Silicon Power Join Forces to Establish the Ultimate Partner in Power Electronics

SEMIKRON and Danfoss Silicon Power announced a merger today to create a
joint business specialized 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, energy efficient and decarbonized 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 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% each year over the next years.i 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% of electrical energy in the world and
only 20% 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.

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

The newly formed SEMIKRON-Danfoss joint business will be owned by the
current owner-families of SEMIKRON and the Danfoss Group, with Danfoss being
the majority owner.

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, SEMIKRON-Danfoss aims to become the preferred
decarbonizing 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.”

Claus A. Petersen, Senior Vice President and General Manager Danfoss Silicon
Power, concludes:

“The new SEMIKRON-Danfoss is a great opportunity for customers, partners and
our employees. Timing is perfect, with strong growth in our key markets
Automotive, Industry and Renewables. With the emerging technology transition
from Silicon to Silicon Carbide, we are set to become the strongest partner
of our customers. SEMIKRON-Danfoss will inspire the future and offers great
career opportunities”.

SEMIKRON

SEMIKRON is one of the world’s leading manufacturers of power modules and
systems primarily in the medium output range (approx. 2 kW up to 10 MW). Our
products are at the heart of modern energy efficient motor drives and
industrial automation systems. Further application areas include power
supplies, renewable energies (wind and solar power) and electric vehicles
(passenger cars, trucks and buses, heavy duty vehicles and other battery
vehicles). SEMIKRON’s innovative power electronic products enable our
customers to develop smaller, more energy efficient power electronic
systems. These systems in turn reduce the global energy demand.

SEMIKRON is a family-owned business founded in 1951, headquartered in
Nuremberg, Germany. Today the company has a staff of more than 3,000 people
in 24 subsidiaries worldwide. This international network with production
sites in Germany, Brazil, China, France, India, Italy, Slovakia and the US
ensures fast and comprehensive service for customers.

Read more about us at www.semikron.com

Danfoss A/S

Danfoss engineers solutions that increase machine productivity, reduce
emissions, lower energy consumption, and enable electrification. Our
solutions are used in such areas as refrigeration, air conditioning,
heating, power conversion, motor control, industrial machinery, automotive,
marine, and off- and on-highway equipment. We also provide solutions for
renewable energy, such as solar and wind power, as well as district-energy
infrastructure for cities.

We deliver value to our customers as a global technology partner with global
leading positions, deep application knowledge and sustainable innovation in
our core businesses:

Danfoss Power Solutions – Full solutions capabilities in mobile and
industrial hydraulics, fluid conveyance, electrification and software
Danfoss Climate Solutions – Sustainable heating and cooling solutions for
buildings, cold chains, industry and infrastructure
Danfoss Drives – Clean-energy solutions such as AC drives, power
semiconductor modules, and electrification in automotive and various
industries
Our innovative engineering dates back to 1933. Danfoss is family-owned,
employing more than 40,000 people, serving customers in more than 100
countries through a global footprint of 95 factories.

Read more about us at www.danfoss.com

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