Chennai-based (Indian) opto-semiconductor chip producer Polymatech Electronics has announced a major USD 16.2 million investment in Bahrain, marking the company’s first foray into the Middle East and North Africa (MENA) region. According to top business officials, the investment is part of Polymatech’s broader plan to allocate over USD 100 million to the Gulf nation by 2027.
This move is a strategic step for Polymatech, which specialises in production, packaging, and assembly of opto-semiconductor chips and modules. These opto-semiconductors play a critical role in a wide range of applications, including medical illumination, large-area lighting, cell phone backlights, agriculture, and electronics such as PCs and laptops, where they either emit or sense light.
“This is the first semiconductor investment in Bahrain. Projects like this, which are both significant and impactful, directly benefit from Bahrain’s labour fund. This fund is focused on developing human capital and upskilling Bahraini talent in specialised fields like semiconductors,” said Ali AlMudaifa, Chief of Business Development at Bahrain’s Economic Development Board (EDB).
AlMudaifa added that Polymatech’s investment aligns perfectly with Bahrain’s industrial and manufacturing strategy. Advanced manufacturing and microelectronics were identified as key subsectors in the country’s economic recovery plan, announced in October 2021.
Bahrain’s Manufacturing Strategy And Semiconductor Growth
“We’ve always had the ambition to bring this business to Bahrain, and now we see how crucial it has become,” said AlMudaifa, referencing the global semiconductor shortage that led many countries to impose protectionist measures on their semiconductor industries.
“We are thrilled to welcome this sector to Bahrain and look forward to seeing it thrive here,” the official continued.
Polymatech has already leased 25,000 square feet for an assembly unit and owns the property for a future 100,000-square-foot production facility in Bahrain’s Industrial Area of Hidd. The facility will be branded under the name Atri, signalling the company’s ambitious plans for the region.
Polymatech’s Focus On Food Security And Medical Electronics
Polymatech’s Managing Director and CEO, Eswara Rao Nandam, emphasised that the company’s efforts in the MENA region would focus on two critical sectors: food security and medical electronics. Bahrain will serve as the company’s regional headquarters.
“Post-COVID, the world has become acutely aware of the need for food security. In response, we are developing specialised lighting solutions for photosynthesis and hydroponics,” Nandam explained, while adding, “We are also focusing on medical electronics, producing devices like endoscopes, laparoscopes, surgery operator lights, and vein finders—products that are crucial for modern medical procedures and directly tie into the region’s growing emphasis on healthcare.”
As part of its expansion in Bahrain, Polymatech expects to attract a strong network of suppliers to the region. Nandam revealed that the company anticipates at least three or four vendors to set up operations in Bahrain to support its business.
“We’ve already received positive signals from two Japanese and one US vendor, all of whom have expressed interest in opening operations in Bahrain,” Nandam said.
Bahrain As A Gateway To The Gulf And MENA Region
Polymatech’s investment announcement comes during a high-level visit from Bahrain’s investment promotion agency to several Indian cities, including Mumbai, Bengaluru, and Chennai. The visit aimed to explore potential collaborations with Indian companies in key sectors.
Speaking about the growing relationship between India and Bahrain, H.E. Noor bint Ali Alkhulaif, Bahrain’s Minister of Sustainable Development and Chief Executive of the Bahrain EDB, highlighted India’s strategic importance for Bahrain and the wider Gulf Cooperation Council (GCC).
“The GCC—comprising Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain, and Oman—is a political and economic alliance. We believe that both India and Bahrain can mutually benefit from our shared strategies, goals, and growth opportunities. Bahrain is seen as the gateway to the GCC and MENA regions, especially due to our direct links to Saudi Arabia through the causeway, which plays a vital role in trade between the two nations,” Alkhulaif said.
Sectoral Focus And Prospective Collaborations
During her visit to India, Alkhulaif discussed the sectors that Bahrain is doubling down on, including ICT, financial services, tourism, manufacturing, and logistics.
“These are the core sectors we are focusing on, but we also have dedicated teams looking into opportunities in healthcare and education,” she noted, while adding, “In the past few days, we’ve seen very encouraging signs from both established companies and startups in India that are interested in expanding to Bahrain.”
Polymatech Electronics’ investment in Bahrain marks a significant milestone in the semiconductor industry for the company and the Gulf nation. With Bahrain positioning itself as a hub for advanced manufacturing and microelectronics, this partnership not only benefits Polymatech’s global ambitions but also supports Bahrain’s goal of becoming a leader in high-tech industries.
As Bahrain continues to strengthen ties with India and other key global markets, investments like Polymatech will play a crucial role in shaping the economic landscape of the region, particularly in areas like food security, medical electronics, and sustainable manufacturing practices.
This collaboration signals a bright future for Bahrain as a key player in the global semiconductor industry, leveraging its strategic location and growing industrial infrastructure to attract high-value investments.