Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 255

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 11
Chunk 255
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 NIS may increase the costs, in USD terms, of our Israeli facility, such as utilities, taxes and labor costs that are
denominated in NIS, which may lead to erosion of profit margins. We use foreign currency cylinder and forward transactions to hedge a
portion of this currency exposure and maintain it within a pre-defined fixed range.

Assuming a 10% appreciation of the NIS against the USD on December
31, 2024 (from 3.65 NIS/$ to 3.32 NIS/$), the effective impact on our quarterly Israeli expenses would be higher operating expenses by
approximately $4 million, which would 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