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German firm creating 300 jobs at Quad-C in Marcy, state spending $100M to prepare space

By Eric Reinhardt

Date:

Danfoss LogoMARCY, N.Y. — Danfoss Silicon Power GmbH plans to establish packaging operations in the Computer Chip Commercialization Center (Quad-C) in Marcy and is expected to create 300 new jobs.

New York will spend $100 million to complete portions of Quad-C “in order for Danfoss to establish their facility,” the office of Gov. Andrew Cuomo said Friday in a news release posted on the website of Empire State Development.

The German firm is a supplier of power electronics; heating, air conditioning, and ventilation; and mobile-hydraulic products, Cuomo’s office said.

The Albany Times Union reported that the German firm had “signed a memorandum of understanding nearly a year ago to operate a power electronics chip packaging facility at SUNY Polytechnic Institute’s Utica campus in partnership with General Electric Co.”

The company’s customers include Fairfield, Connecticut–based General Electric (NYSE: GE), Cuomo’s office said in its news release.

Danfoss Silicon Power is located in Flensburg, Germany, but the parent company, Danfoss, is headquartered in Nordborg, Denmark, according to its website.

Friday’s announcement comes just over three months after Austrian–based company ams AG decided not to pursue a project that would’ve invested more than $2 billion in a wafer-fabrication facility and resulted in 1,000 new jobs to the Nano Utica site.

 

State incentive

New York plans to spend $100 million to finish work at Quad-C, which will include construction, tools and equipment.

Danfoss will lease both the facility and tools from New York in return for the creation of at least 300 new jobs in Utica for the next 15 years.

The state expects Danfoss to be operational in the Mohawk Valley and serving its customers by early 2018.

“With Danfoss’ commitment to establishing state-of-the-art manufacturing operations in Utica, we are cementing New York’s role as a leader in semiconductor research and development, while creating hundreds of good-paying jobs in the region,” Cuomo said in the release. “This expansion is proof positive that we are attracting 21st century companies from across the globe to Utica, and leveraging next generation technology to foster the continued growth and success of Mohawk Valley communities for years to come.”

 

Expanded U.S. presence

This facility will allow Danfoss Silicon Power to “better serve” its U.S. customer base and will bring “cost efficiency and quality manufacturing to the fast growing” silicon carbide industry, Cuomo contended.

Danfoss Silicon Power is an independent, custom power-module manufacturer, which serves the automotive, renewable energy, and industrial sectors.

It chose New York for the state’s “strong technology ecosystem” and “skilled” workforce.

The Quad-C facility expands the company’s presence in the U.S. and “complements” the output of its Flensburg, Germany operations.

The U.S. demand for power modules is “mainly driven” through Japanese and German imports, Claus Petersen, VP & GM of Danfoss Silicon Power, said in Cuomo’s release.

“With this investment Danfoss will offer the US market a strong local partner, capable of providing best in class in packaging technology and high volume, high quality manufacturing,” said Petersen.

Danfoss, which is headquartered in Denmark and employs more than 24,000 worldwide, will occupy the entire Quad-C facility in Marcy. It includes two clean rooms, lab, and office space.

This project “supports and advances” the New York Power Electronics Manufacturing Consortium, Cuomo’s office said.

The consortium is a public-private partnership in “developing the next generation of semiconductor materials and packaging to enable the creation of smaller, faster and more efficient mobile devices,” according to the news release.

These are “exciting times” in the Mohawk Valley, as the region has “solid momentum” with Danfoss’s added investments at the Quad C, Steven DiMeo, president of Mohawk Valley EDGE, said. “This partnership adds to the high tech ecosystem already in place around the region, and compliments the developments happening at Marcy Nanocenter.”

 

Contact Reinhardt at ereinhardt@cnybj.com

 

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