A new chip factory is set to be established in T眉rkiye鈥檚 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鈥檚 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 T眉rkiye鈥檚 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 T眉rkiye and the US will boost the competitiveness of 鈥淢ade in T眉rkiye鈥� products.
Yali explained that the Turkish market鈥檚 annual cell capacity needs can reach up to around six to seven gigawatts, and pointed out: 鈥淭he US domestic market is at the 60 gigawatt level.鈥�
鈥淲e want to export most of the cells to be produced at the new chip factory and we鈥檙e implementing this investment to use two gigawatts in T眉rkiye and three gigawatts to be sent to the US,鈥� he said.
鈥淭he investment consists of two phases: first, we will have approximately two gigawatts of capacity operational in T眉rkiye, and second, while that capacity is up and running, we will produce three gigawatts,鈥� he added.
Yali stated that the facility will begin full-scale mass production in the fourth quarter of 2026.
鈥淭he 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鈥� he said. 鈥淎dditionally, Sivas has a university of its own, and its students can provide labor after a certain point.鈥�
鈥淚n 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鈥檚 industrial zone is close to the university,鈥� he noted.
鈥淭眉rkiye is still a solar cell importer but the factory we will establish will meet nearly 70% of the cell imports,鈥� Yali said, adding that they will be announcing a technology partner soon that will further strengthen their competitive edge. 鈥淭眉rkiye 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,鈥� he added.
Reporting by Gulsen Cagatay
Writing by Emir Yildirim
Anadolu Agency
energy@aa.com.tr