Polymatech Electronics Invests $16.2 Million in Bahrain, Aims for Over $100 Million by 2027 The investment is part of a broader strategy, with the company planning to spend over $100 million in the Gulf nation by 2027
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Polymatech Electronics, a Chennai-based opto-semiconductor chip maker, has announced a major investment of $16.2 million (approximately INR 136 crore) in Bahrain, marking the first phase of its expansion into the Middle East and North Africa (MENA) market. The investment is part of a broader strategy, with the company planning to spend over $100 million in the Gulf nation by 2027, top officials told Economic Times.
Polymatech, which designs, manufactures, and assembles opto-semiconductor chips and modules, sees Bahrain as a strategic hub for its operations in the MENA region. These opto-semiconductors, which are used in a range of applications such as medical lighting, agriculture, and consumer electronics, are at the heart of Polymatech's innovation-driven growth.
Ali AlMudaifa, Chief of Business Development at the Bahrain Economic Development Board (EDB), hailed the investment as a landmark moment. "This is the first investment in the Kingdom of Bahrain in the field of semiconductors. A project as strategic and impactful as this also stands to benefit a lot from our labour fund in Bahrain, which is aimed towards the human capital development and upskilling of Bahraini talent in this field," he told ET.
Bahrain's push for semiconductor and microelectronics development is part of a broader economic recovery plan launched in October 2021, which identified advanced manufacturing as a key sector. AlMudaifa noted that with the global semiconductor shortage and increased protectionism, Bahrain's entry into the industry was both timely and necessary. "We always had an aspiration to attract this industry to Bahrain...so we are very excited to have this subsector enter into Bahrain and hopefully to grow as well."
Polymatech's immediate focus in the region will be food security and medical electronics. "After Covid, everybody wants to have their own food security. With food security, we have a full spectrum of lights including for photosynthesis and hydroponics (support devices) and in medical electronics, there is (chips for) endoscope, laparoscope, some other operators for surgery and vein finders," Eswara Rao Nandam, managing director and CEO of Polymatech quoted ET.
The company has leased a 25,000 square foot space for assembly operations, but has ambitious plans to build a 100,000 square foot production facility under the brand name Atri, in Bahrain's Industrial Area of Hidd. Polymatech also intends to bring along 3-4 of its vendors to set up operations in Bahrain, with positive interest already expressed by two Japanese vendors and one from the U.S.
The announcement comes during a high-profile visit by Bahrain's investment promotion agency to India, covering key cities like Mumbai, Bengaluru and Chennai. H.E. Noor bint Ali Alkhulaif, Bahrain's Minister of Sustainable Development and chief executive of the Bahrain EDB, emphasized the importance of India as a strategic partner. She said India has been a strategic region for the country, given the growth that India is witnessing as well as the growth that the Gulf Cooperation Council (GCC) is witnessing.
Highlighting the opportunities for mutual benefit, Noor said, "Bahrain is the gateway to the GCC and the wider MENA region, more specifically the access to Saudi through the causeway and the strong relationships that underpin that causeway and the trading between the two countries."
The minister also spoke of Bahrain's focus on five key sectors—ICT, financial services, tourism, manufacturing, and logistics—but noted that there were exciting possibilities for collaboration in health, education, and other sub-sectors. "We've managed to see quite a few companies over the last few days (in India), some large conglomerates but also some startups, which have been quite positive," she added.
As Bahrain solidifies its role as a gateway to the GCC and the broader MENA region, investments like Polymatech's underscore the kingdom's growing appeal as a hub for cutting-edge technology and manufacturing innovation.
