The venture would establish back-end manufacturing capabilities for Vishay, covering post-fabrication wafer processing, assembly, testing and packaging. It may also provide services to third-party customers, the filing said.

Vishay would take a 49% interest in an existing Kaynes Technology subsidiary, while Kaynes Technology would retain 51%. Any future funding would be provided by the two companies in proportion to their respective ownership stakes, according to the filing.

Under a binding term sheet, the companies plan to submit a joint application for government support under India's recently announced subsidy program for semiconductor projects. The proposed transaction remains subject to definitive agreements, required approvals and other customary closing conditions.