Vishay would invest $56.4 million for 49 per cent stake in a subsidiary of Kaynes technology, as the latter would retain 51 per cent of stake.
The US-based Vishay Intertechnology signed a term sheet agreement with Kaynes Technology to establish a semiconductor manufacturing joint venture (JV) in India. The facility will support Vishay’s back-end integration, supporting post-fabrication wafer processing, assembly, test and packaging. The JV may also provide services to third-party customers according to the term sheet.
Vishay and Kaynes may file a joint application for government support under India Semiconductor Mission (ISM) 2.0 programme. Vishay would invest $56.4 million for 49 per cent stake in a subsidiary of Kaynes technology, as the latter would retain 51 per cent of stake, according to Vishay’s filing with the US Securities and Exchange Commission (SEC). Future funding will be made by both the companies depending on their ownership interests.
Vishay will eventually hold determination rights for the JV, including auditor appointments and IT systems. Other determination matters include equipment selection, and approval of customers outside the Vishay group, a global manufacturer of discrete semiconductors and passive electronic components. ‘Specific matters’ have to be approved by both sides. The proposed transaction is subject to execution of definitive agreements, required approvals and other customary closing conditions
