Danfoss strengthens its electrification business with full ownership of Semikron Danfoss

Danfoss has acquired 100% ownership of power electronics leader Semikron Danfoss, moving from a joint venture to fully owned subsidiary of Danfoss enabling Danfoss to accelerate the company’s electrification business. As part of our continued portfolio optimization, we intend to divest our automotive business.

Danfoss announces the acquisition of the remaining shares in Semikron Danfoss, increasing its ownership from 62% to 100% and gaining full ownership of the global leader in power electronics.

The acquisition reflects Danfoss’ refocused electrification priorities and is aligned with the execution of the LEAP 2030 strategy.

“As part of our strategy, LEAP 2030, we are prioritizing investments in high-value opportunities, such as electrification, within our core businesses. The full acquisition of Semikron Danfoss allows us to fully accelerate our investments in technology leadership, in advanced power modules, and industrial-scale power electronics solutions that create maximum value for our customers,” said Kim Fausing, President & CEO of Danfoss.

With full ownership, Danfoss moves from a joint setup to full autonomy. This strengthens Danfoss’ ability to serve customers with industrial-scale power electronics solutions and sharpens focus on core businesses including industrial drives, renewables, data centers, energy storage solutions, off-highway and construction as well as commercial on-highway vehicles beyond electric passenger cars.

“Full ownership provides clearer strategic focus for Semikron Danfoss. It enhances our ability to develop technology leadership where electrification delivers the greatest value for our customers,” said Mika Kulju, President, Power Electronics and Drives, Danfoss.

The transition to full Danfoss ownership will occur without changes to daily operations.

“For our customers, partners, and employees, it is business as usual. Semikron Danfoss will continue to operate in the accustomed manner, with the same dedicated teams and unchanged operational leadership,” said Dominic Dorfner, President of Semikron Danfoss. “Our commitment to reliable delivery, confidentiality, and customer support remains absolute. In fact, the clarity of full ownership will improve our execution and long-term value creation, making us an even stronger partner.”

SEMIKRON and Danfoss announced their merger in March 2022, creating Semikron Danfoss as a joint business specialized in power electronics and power semiconductor modules. Since the merger, Danfoss has consistently invested in developing Semikron Danfoss’ capabilities in power electronics.

As part of this strategic realignment, and a result of our active, continued portfolio reviews, we identified the Semikron Danfoss business dedicated to power modules for electric passenger cars as non-core. Consequently, Danfoss intends to pursue a divestment of this part of the business. This will allow the company to concentrate on its core industry and solutions divisions.