Turkey to mass-produce indigenously developed semiconductors

In a bid to become a self-sufficient powerhouse in the global tech industry, Turkey is making significant strides in chip design and production. One of the key players in this revolution is Yongatek Microelectronics, a Turkish chip design firm that has been working tirelessly since 2014 to establish itself as a national hub for chip design and production.

Yongatek is currently collaborating with Turkish appliance maker Beko to develop microcontrollers for home appliances as part of Turkey's HIT-30 funding program. The research and development for this project has mainly been completed, with prototypes going into production at the end of this year and mass production beginning next year.

Beko alone is expected to use 30 million microcontroller units annually, a number that could reach up to 50 million in sectors like defense, robotics, and IoT. This collaboration is a significant step towards reducing Turkey's reliance on imported chips, which currently make up the majority of the country's chip production, limited to only sensors.

Yongatek is also venturing into the development of AI chips. The company is working on creating AI chips to power smart cameras and smart city applications for security purposes, with mass production expected in 2027 and 2028. Furthermore, Yongatek aims to have an infrastructure in Turkey to produce mid-level 1-2 FPGAs previously used by American chip firm Xilinx, with plans for mass production later down the line.

The global tech and chip trade war between the U.S. and China poses a threat to the world's efforts to produce their own chips. Major U.S. firms such as Nvidia, Qualcomm, Broadcom, and Apple are moving chip production to the U.S., which could create a new frontier in the "chip war" if fully achieved. However, Yongatek is undeterred and is working with Beko to ensure that Turkey remains a player in this arena.

Baran, the CEO of Yongatek, has emphasised the need for more "design houses" for chips to be established in Turkey and encouraged Turkish engineers working abroad to return and contribute to national efforts. Turkey is planning to offer a support package worth around $5 billion to attract international tech companies to establish production infrastructure in the country to accelerate chip production domestically.

As Turkey moves towards mass production of homegrown chips, the first goal is to start with home appliances, potentially expanding to the auto sector with 22 nanometer chips. Baran has also called for contributions from firms like Aselsan and the country's Scientific and Technological Research Institution (Tubitak) to establish a chip production line, which could take up to three years.

While there are no publicly known companies explicitly intending to establish chip production facilities in Turkey to support the development of chip design houses in the country, Yongatek's progress is a promising start. The company's work in collaboration with Beko is setting a precedent for domestic chip production and could pave the way for a self-sufficient tech industry in Turkey.