On June 25, Danfoss Group and Nanjing Development Zone held a signing ceremony, at which Danfoss announced that it would invest 100 million euros to build the "Danfoss Silicon Power Division China Factory" in Nanjing Development Zone to concentrate on the production and development of power modules.
The plant covers an area of about 50,000 square meters and will be built in two phases. The first phase of the plant is scheduled to break ground in the second half of this year, be completed in the first quarter of 2023, and complete mass production by the end of that year. The plant will be equipped with the most advanced and efficient fully automated customized production line, with an annual production capacity of up to 2.5 million pieces per production line.
Danfoss Silicon Power is a futuristic part of the Group. For decades, Danfoss Silicon Power has been working with the world's top manufacturers and system suppliers to plan and develop customized power modules for car, solar, wind and industrial applications, helping them improve product and system stability, optimize planning and reduce costs.
It has production sites in Flensburg, Germany, and Utica, United States, and a development center in Munich, Germany. The new plant announced this is the third production base established by the division in the world.
The European Green Deal, announced in December 2019, clearly states that Europe will first achieve "carbon neutrality" by 2050. In 2020, China announced that it would increase its nationally determined contributions, adopt more powerful policies and methods, strive to peak carbon dioxide emissions before 2030, and strive to achieve carbon neutrality before 2060.
With the strategic layout of the global green environmental protection field in full swing, new energy cars, battery-powered equipment and renewable energy are all in demand for efficient and reliable power semiconductor equipment, and the market demand for power semiconductors is soaring, especially in the new energy electric car industry. China has become the world's largest new energy car market, accounting for half of the world's total sales volume in annual sales, and its production and sales have ranked first in the world for five consecutive years. According to the plan, by 2025, the sales of new energy cars in China will reach 5 times the sales volume in 2020, and the power module market has huge potential.
Danfoss' leading technology in power module products is widely recognized by customers in the car industry. In 2019, Danfoss signed a strategic partnership with ZF Friedrichshafen AG (ZF Friedrichshafen AG), a global leader in passenger car transmission and chassis technology, to further strengthen their collaboration in the field of silicon and silicon carbide power modules. Danfoss has also been selected as a new power module supplier for a series of OEM projects signed by ZF.
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