Türkiye advances toward self-reliant chip production amid global tech rivalry

Efforts to eliminate foreign dependency in chip technologies needed by various sectors in Türkiye are moving toward mass production.
Ali Baran, General Manager of Yongatek Microelectronics, which has been operating since 2014 with the mission of making Türkiye a chip design and production center, spoke to Anadolu Agency's Technology Desk.

Baran emphasized that the chip industry and technology are going through a complete transition process and said there have been some difficulties during this period. He noted that chip technologies are at the center of the "trade war" between the U.S. and China.

The U.S. sees China not only as a manufacturer but as a country possessing technology, which it perceives as a threat, Baran explained:
"This is the U.S.'s perspective, and at this point, it wants to regulate the whole world.

Chips used to be defined 40-50 years ago as 'designed in Silicon Valley, produced in the Far East.' Yes, design was very critical back then and still is. Production was somewhat less critical, defined, requiring human labor, and not considered very valuable.

But if we look at the last 20-30 years, we've seen how important production has become. We faced a major chip crisis during the pandemic because demand could not be met when many orders came in collectively. The current chip production infrastructure is already operating at nearly 100% capacity. When demand rises rapidly, there's no chance to respond."

Baran said the U.S. pursues a strategy to meet chip production needs of companies like Nvidia, Qualcomm, Broadcom, and Apple domestically and emphasized that once this is fully realized, the "chip war" will enter a different phase.

OIL'S ROLE SHIFTS TO CHIPS

Ali Baran agreed with the view that "chips will replace oil as the defining resource of the 21st century" and added:
"Artificial intelligence (AI) will be the arena where this fully unfolds. Problems in AI will stem from hardware, from chips.

You might have excellent software, but without chips, you cannot run or access it. What will you do? After Trump became president, AI chips were categorized into three groups. We are in the second category.

The first includes the U.S. and very developed countries, which are expected to reach AI chips together with the U.S. The second category, including us, will come a bit later. The third category will be far behind.

China and companies in the Middle East are those who can break this game. If they can't, the level of development and commercial competitiveness of countries will be ranked accordingly. Countries that get advanced AI chips earlier will surpass others. For at least the next 50 years, chips will be one of the most important battlefields. Countries with chip technologies will surpass others and use other countries as markets."

"CHIP INVESTMENTS ARE BEING EVALUATED"

Baran mentioned ongoing work in Türkiye, recalling that their collaboration with Beko on chips for white goods has been included in the HIT-30 Program.

He also noted that a support package of around $5 billion exists if foreign companies with technology come and establish chip production infrastructure in Türkiye.
"I think it's a significant package. Wherever we go, our government, the Presidency Investment Office, and the Ministry of Trade keep reminding firms and countries about this. There are some discussions and efforts in this regard."

He underlined Türkiye's strong potential, highlighting that Europe's highest number of TV manufacturing companies and Beko, the second-largest white goods producer globally, are based in Türkiye. If this potential is properly managed, significant developments could happen soon.

"There could be direct investment, and they are evaluating this. I believe we have a chance. Some developments may happen soon."

"STARTING WITH WHITE GOODS AND AUTOMOTIVE MAKES SENSE"

Baran pointed out that Türkiye is almost entirely dependent on foreign chips. Some sensor production exists but is limited and not commercialized.

This causes supply chain security risks. One motivation behind the agreement with Beko was to address this.
"We will build a chip factory. There are hundreds worldwide. Will we meet all chip needs in Türkiye? No, that's neither realistic nor competitive. We want to invest to produce some of the widely used chips domestically and have this technology in our country.

Then, depending on global chip market developments or difficulties, we can expand or maintain this level. Having this technology will allow us to act more freely.

There have been problems in defense industry due to embargoes by some firms, limiting access to components. That raised the question: how do we fly our UAVs or operate military computers? Thankfully, the problem was solved without going too far. If you can do this yourself, such problems won't exist anymore."

He talked about 7nm and 5nm AI chips but said their immediate target is 28nm, 22nm, or 40nm chips, starting with white goods.
"Currently, 40nm chips are used in white goods and can meet considerable needs. The newer 28nm or 22nm chips could meet automotive needs. Starting with investments at these nodes would be meaningful and cost-effective."

"WE DON'T WANT TO DEPEND ON ANYONE"

Baran said even if machines arrive quickly, setting up, running a chip production line, and producing commercial products takes 2-3 years and requires trained human resources.

He highlighted the importance of TÜBİTAK and ASELSAN's chip efforts and expects more contributions from large institutions beyond design.

Regarding Türkiye's communication market, he said:
"We have mostly become a market for China-based firms. We don't want this to continue. We can cooperate with foreign firms but must own know-how domestically long-term.

Globally, there's discomfort with Chinese firms; Europe has introduced regulations and restrictions. We say in the cluster: 'Let's produce what we can locally here.' Then we must make them competitive. The way to do this is to turn them into chips. If you can chip them, you can sell them worldwide. This is our vision and roadmap. Hopefully, there will be more concrete developments soon."

Baran stressed that chip supply security is a key issue in the defense industry.
"FPGA chips are widely used in defense, and potential restrictions could deeply affect us. We are working on developing our own FPGA with some foreign-based firms.

The MCU (microcontroller unit) topic, also key for defense, is ongoing with Beko. MCU is in every smart device—IoT, white goods, defense. We want to provide MCU chips for defense needs so no one has to rely on others."

COUNTDOWN FOR NATIONAL MICROCONTROLLERS

Baran said the R&D phase of their project with Beko is largely complete:
"By the end of this year, first prototypes will be produced.

Plans for mass production are for next year. We had talks about testing, production, and packaging competitively in Taiwan. We will not only supply Beko but also meet demands in IoT, robotics, defense markets domestically and abroad. This will be a first in Türkiye.

Beko alone uses 30 million chips annually. We could reach 40-50 million with defense, robotics, and IoT markets. These are big numbers."

He mentioned an ambitious AI chip project:
"We are making chips for smart cameras used in smart city applications—security cameras, automotive cameras, all cameras behind the scenes. This started last year with domestic and foreign customers involved.

This is a big project, actively progressing. It's like TSMC's 12nm. We plan to start production soon, serving Türkiye and the world. It will be a great solution for AI hardware restrictions and meet many applications."

Plans for microcontroller mass production are for 2026, AI chip production for 2027-2028, and FPGA development is ongoing. They joined a European Union consortium with three projects underway and aim to produce mid-level FPGA chips formerly made by Xilinx as proof of concept, then scale to mass production after market validation.

Baran expressed confidence that Yongatek will become a significant chip solution center.

NEXT UP: SATELLITE COMMUNICATION

Baran said they are working on satellite communication solutions and expect 5G technology to merge soon with satellite networks:
"This involves L-band satellites, not G-band. Both IoT and 5G NTN (Non-Terrestrial Network) markets will see new products soon.

We aim to develop a chip for these applications, which are key for smart cities, agriculture, transportation, and IoT. Once this technology is achieved and integrated into chips, it secures the devices and makes us globally competitive. We will start a project on this soon."

CHIP PRODUCTION MODEL

To end Türkiye's dependency on foreign chips, Baran said more "design house" entities should be established and supported with projects. Returning Turkish experts from abroad could speed this up.

He described the ideal model:
"We are an integrated, strong, competitive country with a market and potential. Many problems are solved or being solved. Come investors, let's partner, let's support each other. Build a chip factory here.

I think this is the right approach. After that, we might make something 100% domestic, especially for defense. But this must be together with others. It's an ecosystem."

He stressed the importance of universities partnering with industry and suggested that while government support is essential, the private sector must manage the chip industry.
"I am certain a government-managed chip industry will go nowhere. Strategic, government-backed but privately managed – that's the formula. Large investments are needed.

Other countries have modeled this; we should create a strategic roadmap. We have strong confidence and talent. Look at how many countries have markets like ours that can sell finished products. If we set a strategic roadmap with our big companies, I believe in 20 years we will be players in the chip industry, like in defense."

Baran encouraged Turkish youth to take greater interest in chip technologies:
"I tell young people interested in tech to focus more on electronic engineering and chip topics. We support students at TEKNOFEST and elsewhere, have training programs for newcomers, and are increasing human resources. Once we reach a level, we will design our own chips and sell worldwide. I have no doubt. Our confidence is 100%."