TAI as a prime contractor was awarded a contract in June 21st, 2007 by SSM (Undersecreteriat for Defense Industries) to design, develop and implement the T-38 avionics upgrade for the Turkish Air Force (TurAF) under the T-38 Avionics Modernization (ARI) Program.

Under the T-38 Avionics Modernization (ARI) Program which commenced in September 20th, 2007; a total of 55 TurAF T-38A aircraft are to be upgraded. The modification of five aircraft will be performed at TAI facilities wher as the remaining 50 production aircraft will be modified at TurAF 1st Air Supply and Maintenance Center.

TAI, delivered first T38M aircrat to TurAF at a ceremony held at TAI's facilities in Ankara, Turkey, on April 20, 2012.