Danfoss Silicon Power' s specific aim with this collaboration is to become the world's leading supplier of silicon carbide (SiC) power modules. Thanks to these modules, ever smaller, faster and more powerful electronic units can be produced. Danfoss expects them to revolutionize solar and wind energy technology as well as that of future generations of electric and hybrid vehicles. For example, SiC power modules can reduce the power consumption of electric cars by 10 % and the energy consumption of data centers by 5 %; it is also possible to reduce the weight of an aircraft by 500 kg. In addition, Danfoss expects that the power modules will also be used in shipping, offshore industries and hospital technology in the future.

The transatlantic collaboration will be part of the New York Power Electronics Manufacturing Consortium (NY-PEMC) in Utica. This private-public consortium and other similar programs were established by New York State in 2014 with the goal of creating high-end technology jobs. The investment volume earmarked for this amounts to 18.5 billion euros.

Danfoss Silicon Power plans to begin production of power modules with GE SiC chips in Utica in spring 2018. New York State will cover all start-up costs and finance the equipment for the production facilities. Danfoss will lease the buildings and production equipment and will occupy the entire facility in Utica. This includes two clean rooms, laboratories, offices and logistics space.

Danfoss Silicon Power is based in Flensburg, Germany and is part of the Danfoss Group, which employs more than 25,000 people. The first power module developed by Danfoss Silicon Power was manufactured in Nortorf in 1998. Production grew rapidly and the plant was relocated to Schleswig. However, by 2011, the capacities there were no longer sufficient, which is why DSP moved to the much larger plant in Flensburg in 2012. There are currently 450 employees there.