Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 52

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 52
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 support reduces the number of required runs) or when implementing designs that
reach technology boundaries. Additionally, our IP and design services can help alleviate some of the challenges that our customers face,
providing the specific skills and expertise critical for quick and successful implementation of their design in our fabs.

We believe that our circuit design expertise and our ability to
accelerate our customers’ design cycle while reducing their design costs represent one of our notable competitive strengths.

JAZZ SEMICONDUCTOR TRUSTED FOUNDRY

For purposes of our U. S. aerospace and defense business, Tower
and Tower NPB have worked with the Defense Counterintelligence Security Agency of the United States Department of Defense (“ DCSA”)
to mitigate concerns about foreign ownership, control or influence over the operations in Fab 3. To protect against potential unauthorized
access to trusted and classified materials and information, Jazz Semiconductor Trusted Foundry (“ JSTF”) was established as
a subsidiary of Newport Fab LLC, which is directly held by NPB Co., and the possession of trusted and classified information is restricted
to JSTF. JSTF maintains facility security clearance (which is currently limited but may be remediated) and Trusted Foundry accreditation
status.

C. ORGANIZATIONAL STRUCTURE

The legal name of our company is Tower Semiconductor Ltd. Tower was incorporated under
the laws of the State of Israel in 1993.

Tower directly operates our Fab 2 facility in Israel.

Tower’s wholly-owned subsidiary, US Holdings Inc., owns all
of the shares of Tower Semiconductor NPB Holdings, Inc., which owns all of the shares of Tower Semiconductor Newport Beach, Inc. (all
three companies are incorporated in Delaware), which operates our Fab 3 facility located in Newport Beach, California.

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Tower holds a 51% equity stake in Tower Partners Semiconductor
Co., Ltd., incorporated in Japan (Nuvoton Technology Corporation Japan holds the remaining 49% stake), which operates the Uozo E and Tonami
CD fabs located in Japan.

Tower’s wholly-owned subsidiary, Tower US Holdings Inc.,
also owns all of the shares of Tower Semiconductor San Antonio, Inc., incorporated in Delaware, which operates our Fab 9 facility located
in San Antonio, Texas, US. In addition, Tower will have access to a 300mm capacity corridor at Intel’s facility in New Mexico,
the United States, after the necessary equipment is purchased and installed and the corridor is qualified for production.

Tower’s wholly-owned subsidiary, Tower Semiconductor Italy