Marking its entry into the MENA semiconductor market and focusing on food security and medical electronics, Polymatech Electronics is set to invest $16.2 million in Bahrain’s facility.
Polymatech Electronics, an opto-semiconductor chip manufacturer based in Chennai, is allocating $16.2 million (around ₹1.36 billion) for investment in Bahrain. According to sources who spoke to the Economic Times, this is part of the company’s plan to invest over $100 million in the Gulf region by 2027.
The firm further announced that this investment marks its initial entry into the Middle East and North Africa (MENA) market. It specialises in the design, fabrication, packaging, and assembly of chips and modules, used in various applications, including medical lighting, large-area illumination, cell phone backlighting, agriculture, and personal computers.
Following the investment, Polymatech has leased 25,000 square feet for an assembly unit and secured land for a 100,000 square-foot production facility called Atri in Bahrain’s Industrial Area of Hidd.
With Bahrain as its headquarters, the company is focusing on food security and medical electronics, responding to the growing demand in these sectors. They plan to establish 3-4 vendor bases in Bahrain, with positive interest from two Japanese vendors and one from the US.
Ali AlMudaifa, head of business development at the Bahrain Economic Development Board (EDB), announced that this is Bahrain’s first investment in the semiconductor sector. He highlighted the project’s potential to benefit from the labour fund aimed at enhancing Bahraini talent.
Additionally, he noted that advanced manufacturing, particularly microelectronics, is a key focus in Bahrain’s manufacturing and industrial strategy, established under the economic recovery plan launched in October 2021, especially after the global shortage of semiconductors.
During a visit to India, Bahrain’s investment promotion agency, led by H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain EDB, highlighted India’s strategic significance due to its growth and the expanding opportunities within the Gulf Cooperation Council (GCC).
The GCC comprises six Middle Eastern countries: Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain, and Oman.
H.E. Noor emphasised the potential mutual benefits of collaboration between Bahrain and India, positioning Bahrain as a gateway to the GCC and the wider MENA region, particularly through its access to Saudi Arabia via the causeway.
The minister highlighted Bahrain’s focus on five key sectors for collaboration: ICT, financial services, tourism, manufacturing, and logistics, while also exploring investments in health and education. During the visit, they engaged with various companies, from large conglomerates to startups, and received positive feedback on potential partnerships.
