Aselsan Secures $616 Million in ‘Super Incentives’

Aselsan, Türkiye’s leading defence electronics company, has secured $616 million in Project Based Investment Incentives (Super Incentives) from the Turkish Ministry of Industry and Technology to support three critical investment areas that will enhance the country’s indigenous defence capabilities.

The incentives, presented at the “2030 Industrial and Technology Strategy and Large-Scale Investments” launch event attended by President Recep Tayyip Erdoğan, will fund the development of a Photon Detector and Nanotechnology Facility, a Radar System Integration and Production Facility, and an Air Defense Systems Production and Test Facility that includes smart munition production capabilities.

These investments are strategically aligned with Türkiye’s Steel Dome program, which was first announced in August 2023 as a comprehensive “security umbrella” designed to protect the country’s airspace. Unlike Israel’s Iron Dome, which primarily focuses on short-range missile defence, the Steel Dome represents a more integrated approach that combines multiple layers of air defence systems, sensors, and weapons into a unified network.

Aselsan CEO Ahmet Akyol has previously indicated that the company is exploring export opportunities for the Steel Dome system to NATO allies and Gulf nations. “The Steel Dome is very promising system. All nations want to have this kind of system,” Akyol stated in a February interview.

Aselsan – alongside other Turkish defence contractors – expects to manufacture a substantial portion of the radar, sensor, electronics for smart munitions, and air defence technologies that comprise the Steel Dome system at these new facilities.

However, the Steel Dome is just one of Türkiye’s initiatives; these investments will significantly boost Aselsan’s production capacity for critical technologies as a whole. “These facilities will enable us to respond more quickly to the growing export demand for these technologies, making ASELSAN a more competitive player on global scale,” Aselsan stated in its official announcement.

The investment is expected to create 2,244 new jobs, including 1,672 positions for qualified technical personnel. This expansion aligns with Türkiye’s broader strategy to decrease dependence on defence imports while expanding domestic production capabilities. gressional review.-term strategic partnership between the two companies.

Notes and Comments

This substantial funding injection will enable Aselsan to develop cutting-edge technologies in radar systems, sensors, smart munitions, and air defence, effectively bridging the gap with established European and American defence electronics vendors.

The development of facilities for photon detectors, nanotechnology, and air defence systems production showcases Aselsan’s commitment to mastering critical technologies that have traditionally been the domain of Western defence giants.

The Steel Dome project, in particular, demonstrates Türkiye’s ambition to compete on the world stage with a comprehensive, AI-driven air defence network that rivals or even surpasses systems like Israel’s Iron Dome. This move, coupled with Aselsan’s growing portfolio of advanced systems, is elevating Türkiye’s status from a regional power to a global competitor in defence electronics technologies.