Danfoss Silicon Power is establishing production in the US and entering into a collaboration with industrial giant General Electric (GE). The collaboration means that Danfoss Silicon Power will become the world’s leading provider of SiC power modules, according to the company.
The transatlantic collaboration between Danfoss and GE will be part of New York Power Electronics Manufacturing Consortium (NY-PEMC) in Utica, upstate New York. The private-public consortium and other similar programs were established in 2014 by the state of New York with a total investment of more than USD 20 billion for the creation of high-tech jobs.
By early 2018, DSP will establish SiC power modules packaging operations in Utica, and is expected to create hundreds of jobs in the coming years. GE will provide SiC chips for the modules.
The news was announced on Friday, March 24, by Andrew M. Cuomo, Governor of New York State, which is financing all startup costs as well as production facilities. Danfoss will lease both the facility and equipment from New York State and occupy the entire facility in Utica, which includes two cleanrooms, labs, offices and logistics space.
“This is a very important step for Danfoss, as the US is our biggest market and essential to our business. The cooperation with GE has great strategic impact for Danfoss – it is important for our future growth plans in the US, and we have big expectations for the further developments in this highly-specialized area,” says executive VP and COO in Danfoss, Kim Fausing.
With 330,000 employees, GE is one of the world’s leading industrial companies. It has spent millions of dollars in developing SiC chips, which will be used in the power modules from Danfoss.
Danfoss Silicon Power, based in Flensburg, in Germany, is part of the Danfoss Group, which has more than 25,000 employees globally. Danfoss Silicon Power is a manufacturer of power module used in a wide range of applications for the industrial, renewable energy and automotive sectors. They have provided power modules for more than 25 million, mainly European cars.
"Danfoss Silicon Power is gaining a unique position as the only independent SiC module manufacturer in the US and GE has been a customer from day one. Similarly, it has opened the door to the US market, where demand for the power modules manufactured by Danfoss Silicon Power is expected to grow explosively," says Claus A. Petersen, general manager and VPtof Danfoss Silicon Power.
SiC power modules can reduce power consumption in electric cars by 10 percent and the energy consumption in data centers by 5 percent, just as they can lower the weight of an airplane by 500 kilos. In the future, the power modules are also expected to be applied in other sectors like shipping, offshore and hospitals.