Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 42

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 42
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-art SPAD imager, with
pixel level electrical connections between the wafers.

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MEMS and Displays

In the MEMS area, we utilize MEMS switch technology for fast RF
antenna switching and accelerometers for various applications. The rapid growth of the VR headset and AR glasses markets has created a
demand for high-resolution OLED small displays, which can only be manufactured on a silicon backplane. We have developed a highly competitive
silicon backplane technology for the OLEDoS (OLED on Silicon) market, primarily targeting the VR market. Our offering includes a 5V-based
platform with extended 8V native LDMOS ultra-low leakage transistors and highly dense capacitors. Due to the large size of these displays
compared to regular CMOS dies, we believe that this market may grow substantially.

We continue to invest in technology that enhances performance and
integration levels while reducing the cost of analog and mixed-signal products. This includes improving the density of passive elements
such as capacitors and inductors, developing new passive elements, enhancing the analog performance and voltage handling capability of
active devices, and integrating additional advanced features into our specialty CMOS processes.

CUSTOMERS, MARKETING AND SALES

Our marketing and sales strategy aims to further solidify our position
as the leading foundry for high-value analog semiconductor solutions, by increasing our market share with existing customers and expanding
our global customer base. We have marketing, sales, design support engineers, field application engineers, and customer support personnel
located in many countries worldwide. These individuals are selected for their industry experience, customer relationships, and understanding
of the semiconductor marketplace.

Our sales cycle generally ranges from 9 to 24 months or longer
for new customers and can be as short as 6 to 12 months for existing customers. The typical stages in the sales cycle process, from initial
contact until production, are:

  technical evaluation;  

  wafer design to our specifications, including integration of third-party intellectual property;  

  photomask–- design and order third-party photomasks;  

  silicon prototyping;  

  assembly and test;  

  validation and qualification; and  

  production.  

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The primary customers of our foundry and design services are fabless
semiconductor companies and IDMs. Our customer base includes many leaders in the analog and mixed-signal industry, serving a variety of
end market segments. A small portion of our wafer sales are