Turkey has become one of the most important non-EU technology and semiconductor producers and distributors in Europe.

The European semiconductor industry has faced many complex challenges in recent years, especially during the recent supply chain instability, the situation has become more fragile and urgently needs resilient changes. So a relatively new player has entered the field that can strengthen the Europen semiconductor industry: Turkey.

Turkey has become one of the most important non-EU tech and semiconductor producers and distributors in Europe. Its strategic location between Europe and Asia, coupled with significant EU investment and the Turkish government’s R&D efforts, has created a favorable environment for semiconductor companies to grow. In fact, according to Statista, Turkey's semiconductor revenues will increase from $730 million in 2023 to $931 million in 2027.

On July 26, Turkish President Recep Tayyip Erdogan spoke at the HIT-30 High-Tech Incentive Program launch event in Istanbul, indicating that Turkey is accelerating domestic chip production and announced a $5 billion incentive program.

He strongly recommended the joint efforts of local Turkish chip manufacturers TUBITAK Bilgem, Aselsan, Arcelik and YongaTek.

TÜBİTAK BİLGEM's main products include semiconductor technology, cybersecurity solutions, software technology, electronic warfare systems, radar systems, etc.

Aselsan's main products include: communication systems, radars, avionics equipment, electronic warfare systems, air defense systems, target systems, etc.

Arçelik's main products include white goods, built-in appliances, electronic products, small appliances, air conditioning systems, HVAC systems, etc.

YongaTek's main products include IC/ASIC/SoC/chip design, 5G/6G and satellite communications, video processing, IoT technology, etc.

Among them, the 65 nm processor CAKIL, jointly developed by TÜBİTAK BİLGEM and Aselsan, is Turkey's first independently developed microprocessor, designed and produced in Malaysia. This processor aims to reduce dependence on imported products, especially in the defense industry, and is used in fire control and flight systems, drone systems.

"Turkey has about 10 R&D centers, including defense industry companies and universities, which can produce products down to 1 micron. ÇAKIL has fire control, drones, guidance, autopilot, flight control, radar, sonar, etc. in the defense industry. It is intended for signal processing and mission management applications," said a chip industry research report released by the Presidential Digital Transformation Office.

The report also mentioned that the goal of the YONCA project is to design Turkey's own hardware for military and critical civilian applications, enabling Turkey to produce 16-nanometer chips for the first time, laying the foundation for the future production of key chips below 7 nanometers.

In addition, ASELSAN has successfully produced domestic AESA (active electronically scanned array) radar technology, from chip-level production to final system integration, 100% using domestic and national resources in Turkey. The technology flew for the first time on an F-16 ÖZGÜR platform, demonstrating Turkey's growing capabilities in this critical area.

CENTIK plans to produce 25 million pieces per year and strengthen its technology in Türkiye

Under the cooperation between Arçelik and Yongatek, ÇENTİK, a domestically produced microcontroller chip designed and produced for controlling electronic devices, will be mass-produced and used at home and abroad.

The Centik chip will be used by Arçelik in the fields of white goods, consumer electronics, small appliances and kitchen accessories. The design rights of the chip will belong entirely to Turkey. The first prototypes of the project are planned to be created in 2025.

With the export success of this product, YONGATEK has reached an agreement with ARÇELİK, one of the leading companies in the Turkish white goods industry, for mass production.

Within the scope of the agreement with ARÇELIK, YONGATEK will supply about 25 million chips per year. The design of the chips will be done entirely by CHIPATEK, and the production will be carried out by TSMC through IMEC, Europe's leading microelectronics research center. It will serve the domestic market in Turkey as well as international sectors such as robotics, automotive and the Internet of Things. The first chips will be delivered to customers in Dubai, marking CENTIK's first export success.

The mass production of chips will significantly increase Turkey's technological production capabilities. Mass production will reduce costs and allow us to participate in the world market at more competitive prices. In addition, meeting Turkey's demand for chips will help reduce the current account deficit by reducing imports.

This development will also pave the way for a significant contribution from the Turkish defense industry.

Turkey's defense industry continues to develop in 2024 thanks to the efforts of companies and institutions such as ASELSAN, ROKETSAN, HAVELSAN, TUSAŞ, Baykar, Otokar, FNSS, BMC, TÜBİTAK SAGE, ASFAT, MKE, etc.

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