Recent Status Chip Crisis in Turkey

Jeep crisis situation in recent turkiyenin
Jeep crisis situation in recent turkiyenin

During the pandemic process, issues such as remote working and education spread around the world, while increasing the demand for electronic products, brought the chip crisis with it. Turkey's chip design houses that target the way out and Technopark continues to work on chip designs in R & D offices in Istanbul Yongatek our world countries evaluating the chip crisis in general has suggestions for improvement in this area. Yongatek General Manager Ali Baran:

“We believe that the chip design and production capability must be established in our country in order to transfer the self-confidence and technological developments we have gained in the defense industry in terms of chip design to the industry. Here, we first need to create chip design houses and increase the number of people who are experts in this field in our country. In this context, our universities also have very important duties. Academic studies, especially at the point of developing chip software, will enable us to make significant progress as a country in the long term in this field. Afterwards, we think that the use of locally designed chips should be encouraged / supported to prevent imports, even partially. In the medium and long term, we should definitely aim to establish chip production factories in our country. " says.

During the pandemic process, issues such as mobility, remote working and education spread throughout the world, while increasing the demand for tablet, computer, mobile phone and similar electronic products, brought the chip crisis with it. According to experts, the chip crisis was already expected due to the increasing intensity of digitalization, but the pandemic crisis brought the crisis earlier. Likewise, researches on the chip industry predicted that the number of chips to be produced by 2023 would be twice as much as 2019. When the production numbers of TSMC, the world's largest chip manufacturing company, are analyzed, it is seen that the number of chips produced in 2 increased by approximately 2020% compared to the previous year. It is thought that developments in the 21G, Satellite Communication, Automotive and IoT sectors will increase the demand for chips even more in the coming years, and will cause the chip crisis to deepen.

"Countries should focus on the next process and increase investments in the chip sector"

It is seen that different practices have been implemented in many countries in order to overcome this crisis, which will be affected by many countries and sectors. Some of these measures are the USA's requirement for TSMC to establish factories within the borders of America, and Europe's acceleration of efforts to establish alternative chip factories. However, according to experts, it is obvious that the decisions to be taken during this period cannot be implemented very quickly. Because when the chip production processes are examined, there are thousands of steps in a chip production and dozens of border gates that must pass at the point of supply chain. "Countries need to focus on the future and concentrate their investments in the chip sector." Ali Baran said that Yongatek has come a long way in his R&D office in Teknopark Istanbul and he created his own IP (Intellectual property), which is the first stage of chip design, and the second stage, SoC (System on Chip) or ASIC (Application Specific Integrated Circuit). He states that they have come to the stage of creation.

Did he chip factory in Turkey can be established?

According to Yongatek General Manager Ali Baran, setting up a chip factory requires serious costs. A chip factory requires an average budget of 5-6 billion dollars. Therefore, it is thought that such investments will only be possible with state-owned or very large investors. Yongatek as they focus on building design house expresses Baran chip factory in Turkey to establish if the decision underlines that they are ready to give every kind of support. Currently, the chip design and manufacturing of Malaysia that can slide easily into our country to establish a factory in Turkey them produced by the company in Taiwan.

How will technology producers in our country be affected by the chip crisis?

As in every country, our country is expected to be adversely affected by this chip crisis in the near future. Chip procurement processes are expected to lengthen in the short and long term. This situation may prevent access to some strategic products in the long term. It is thought that there may be difficulties in the supply of FPGA chips and cards, especially in the defense industry. It seems that the further extension of the procurement processes here will directly affect many ongoing projects. These, in turn, can disrupt the schedules of many critical technology projects.

Why is domestic technology important in chip production?

According to Yongatek General Manager Ali Baran, it is an inevitable necessity in terms of national security to produce chips to be used in the field of national identity cards, passports and defense with local technologies. Likewise, Satellite Communication, which will become widespread in the near future, and the production of 5G chips with domestic technology will strategically provide significant benefits for our country. In the coming period, it will be very difficult for countries that are not likely to produce these chips themselves to reach their technological independence goals.

Baran: “First of all, we think that this capability is a need for National Security. Having this infrastructure will provide security of supply to our country in the long term. If we look at the developed countries, we see that all of them have this infrastructure. We should realize that we cannot create a sustainable development model without establishing these infrastructures ”.

"We are planning to produce the first 2022G Communication chip in 5"

Speaking about YONGATEK's medium and long-term goals, Ali Baran concludes: “We are designing our own IP and chips in the field of Image Processing and Communication. As a result of the work we have done in this context, we are sending our first Image Processing SoC (RED) to production in the coming days. We are planning to produce the first 2022G Communication chip in 5. The first chips produced will be test chips. We aim to fully reach commercial products after 2023 as well.

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