Danfoss has acquired the remaining shares of Semikron Danfoss, transitioning the power electronics specialist from a joint venture to a fully owned subsidiary. The move increases Danfoss’s ownership from 62% to 100%, a decision aligned with the company's LEAP 2030 corporate strategy.
The acquisition provides Danfoss with full autonomy over the business, enabling it to increase investment in power electronics for its core segments. The company has identified these segments as industrial drives, renewables, data centers, energy storage, commercial on-highway vehicles, and off-highway and construction equipment. Semikron Danfoss was originally formed as a joint venture in March 2022, specializing in power semiconductor modules and systems.
As part of this strategic realignment, Danfoss announced its intention to divest the portion of the Semikron Danfoss business that produces power modules for the electric passenger car market, defining it as non-core. This divestment will allow the company to concentrate resources on its primary industrial and solutions divisions.
"As part of our strategy, LEAP 2030, we are prioritizing investments in high-value opportunities, such as electrification, within our core businesses," said Kim Fausing, president and CEO of Danfoss. "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." Dominic Dorfner, president of Semikron Danfoss, added that operations would continue as usual for customers and partners, stating, "Semikron Danfoss will continue to operate in the accustomed manner, with the same dedicated teams and unchanged operational leadership."
With full ownership, Danfoss aims to strengthen its position in industrial-scale power electronics. The company has assured that the transition will not affect daily operations, with leadership and customer support structures remaining in place. This move signals a deeper focus on providing electrification solutions for heavy-duty and industrial applications.
