Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 124

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 124
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 partially be offset by the net impact of the hedging executed using the above-described cylinder
transactions.

The USD cost of our operations in Italy is influenced by changes
in the USD-to-Euro exchange rate, with respect to expenses and costs that are denominated in Euro. During the year ended December
31, 2024, the USD depreciated against the Euro by 5.9%. This exposure is partially mitigated and maintained within a pre-defined fixed
range through foreign currency cylinder and forward transactions which we engage in.

Assuming a 10% appreciation of the Euro against the USD on December
31, 2024 (from 1.04 Euro/$ to 1.144 Euro/$), the effective impact on our quarterly expenses would be higher operating expenses by approximately
$1 million, which would partially be offset by the net impact of the hedging executed using the above-described cylinder transactions.

ITEM
12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable.

80

PART II

ITEM
13. DEFAULTS,
DIVIDEND ARREARAGES AND DELINQUENCIES

None.

ITEM
14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY
HOLDERS AND USE OF PROCEEDS

Not applicable.

ITEM
15. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer
and our Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures
(as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “ Act”) as of the end of the period
covered by this annual report on Form 20-F. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded
that these disclosure controls and procedures were effective as of such date, at a reasonable level of assurance, in ensuring that the
information required to be disclosed by our company in the reports we file or submit under the Act is (i) accumulated and communicated
to our management (including the Chief Executive Officer and Chief Financial Officer) in a timely manner, and (ii) recorded, processed,
summarized and reported within the time periods specified in the SEC’s rules and forms.

Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate
internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f). Under the supervision and with the