Chip factory to be built in central Türkiye

A new chip factory is set to be established in Türkiye's central province of Sivas in July with an investment of approximately $400 million.

The facility will produce semiconductors and solar cells, and is expected to begin full-scale mass production in the fourth quarter of 2026.

Elin Energy, one of five companies receiving grants through the Ministry of Industry and Technology's HIT-30 High-Tech Incentive Program, is spearheading the project, which is expected to create 1,500 jobs.

Elin Energy President Arda Yali, said in an interview with Anadolu that the facility will have a production capacity of five gigawatts. The project aims to meet Türkiye's growing demand for semiconductors and solar cells, while also supporting export goals, particularly to the US.

Yali noted that reciprocal 10% base rate tariffs between Türkiye and the US will boost the competitiveness of “Made in Türkiye” products.

Yali explained that the Turkish market's annual cell capacity needs can reach up to around six to seven gigawatts, and pointed out: “The US domestic market is at the 60 gigawatt level.”

“We want to export most of the cells to be produced at the new chip factory and we're implementing this investment to use two gigawatts in Türkiye and three gigawatts to be sent to the US,” he said.

“The investment consists of two phases: first, we will have approximately two gigawatts of capacity operational in Türkiye, and second, while that capacity is up and running, we will produce three gigawatts,” he added.

Yali stated that the facility will begin full-scale mass production in the fourth quarter of 2026.

“The reason why we chose the province of Sivas is because the chip factory consumes a significant amount of water and the facility takes up 220 acres of space” he said. “Additionally, Sivas has a university of its own, and its students can provide labor after a certain point.”

“In large cities, the industry is so developed that it is no longer easy to find blue-collar workers but the facility in Sivas is very close to the city center, and the city's industrial zone is close to the university,” he noted.

“Türkiye is still a solar cell importer but the factory we will establish will meet nearly 70% of the cell imports,” Yali said, adding that they will be announcing a technology partner soon that will further strengthen their competitive edge. “Türkiye will no longer need to import solar cells within the next three to four years, and it will become an exporter of solar cells instead,” he added.