The details of the high tech investment program HIT-30, which President Recep Tayyip Erdoğan announced on July 24, have become clear. Under the HIT-30 program, a total support budget of USD 30 billion has been determined. Support will be provided under the Project-Based Incentive System, which is still in force.
Until 2030, a total of USD 19.7 billion of support will be provided for investments in electric vehicles, batteries, chips, solar, wind and R&D. With the subsequent calls, the total support budget will reach USD 30 billion. Investors will be provided with a wide range of incentives such as free investment space, public purchase guarantees for necessary products, and coverage of up to 50 percent of the energy bill. Projects under the so-called HIT-30 system, which provides comprehensive support and incentives to special projects in high-priority technology areas, will benefit from the incentives provided under the Project-Based Incentive System currently in force. Within the scope of HIT-30, a total of 8 priority investment areas have been identified: mobility, healthy living, communication and space, domestic manufacturing, digital technologies, semiconductors, green energy and value chain. In these areas, 33 investment topics were identified.
Support will continue until 2032
Investments starting before December 31, 2025 will be able to benefit from the opportunities and support offered by the HIT-30 Program. The number and size of projects planned to be supported under the program, production capacity and quality will be different depending on the investment subject. The period of benefiting from the special incentive packages defined under HIT-30 will end in 2030-2032, depending on the subject of the investment. As investments are realized for each investment subject, special privileges will be gradually reduced and terminated according to the level of achievement of the targets. When the targeted number of projects and capacity size is reached in a certain investment area, new support applications under the HIT-30 program will cease to be received for that investment area.
6 KEY PRODUCTION AREAS CALLED FOR
- HIT-ELECTRIC VEHICLES-USD 5 billion
New investments that will provide a minimum annual production capacity of 150 thousand electric vehicles, have a high domestic contribution rate, and include the establishment of an R&D center will be supported. Customs duty exemption and/or grant support up to 15 percent for a certain number of vehicles, tax incentives up to 80 percent, employment support, tax exemption, allocation of investment space, financing support.
- HIT-BATARIA – USD 4.5 billion
The aim is to bring Turkey to a level to utilize its export potential, especially for the European market. A total of USD 4.5 billion of support will be provided. A production capacity of 80 GWh, including R&D investments, will be created. In addition to a capacity of at least 5 GWh, production including cells will be required for investments. Grant support up to 6 thousand dollars per MWh to be produced until 2030. The grant rate will be 25 percent and the tax incentive will be up to 60 percent. Tax exemption, allocation of investment space and financing support will be provided.
- HIT-SEMICONDUCTOR- USD 5 billion
With a total support budget of USD 5 billion, it is aimed to create an annual production capacity of at least 1 million semiconductors at 65nm or more advanced technology. Within the scope of the call, investments covering elements of the chip value chain such as ingot, wafer, testing and packaging will also be supported. Up to 30 percent capital contribution, up to 10 percent grant, up to 80 percent tax incentive, investment location allocation, employment support, tax exemption and financing support will be provided for chip investments.
- HIT-SOLAR – USD 2.5 billion
It is aimed to create a total cell production capacity of 15 GW, including high domestic contribution and R&D center investments. In this context, a minimum production capacity of 5 GW will be required for investments in cell production starting from ingot. In other words, the program envisages the realization of at least 3 investment projects.
- HIT-WIND USD 1.7 billion
The budget will support new technologies, growing areas such as offshore turbines and projects for the production of critical components of turbines. Grants of up to 20 percent and tax incentives of up to 60 percent will be provided for integrated OEM investments and investments in critical components of turbines. There will be employment support, tax exemption, investment site allocation and financing support.
- HIT R&D – USD 1 billion
With a total grant support budget of USD 1 billion, it is aimed to establish 10 global-scale R&D centers focusing on priority technology areas. Within the scope of the project, R&D center investments that will employ at least 250 R&D personnel will be supported for companies ranked among the top 1000 companies in the EU Industrial R&D Investment Scoreboard. Grants up to 50 percent of personnel expenses, grants for R&D collaborations, corporate tax exemptions and tax exemptions will be provided.
QUALIFICATIONS REQUIRED FOR PROJECTS
1-Focusing on new technologies
2-Have the necessary economic scale for competition
3-Technical competence and financial competence, partnership with international stakeholders
4-Technological acquisition dimension and possession of intellectual property rights will be sought
5-Strategic added value
