Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 97

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 97
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  Process and product engineering, R& D and design                     882        887      1,067  
  Operations                                                         3,638      3,491      3,858  
  Operations support                                                   625        544        410  
  Sales and marketing, finance & administration                        214        293        278  
  Total                                                              5,359      5,215      5,613  

As of December 31, 2024, we had 1,480 employees located in Israel,
1,492 employees located in the United States, 2,352 employees located in Japan and 35 employees located in other countries in the Asia
Pacific region and across Europe.

Other than a special collective agreement relating to our Israeli
employees regarding employer payments to pension funds of such employees, as described below, our employees in Israel are not covered
under a collective bargaining agreement. However, in Israel we are subject to certain labor statutes and national labor court precedent
rulings, as well as to certain provisions of the collective bargaining agreements between the Histadrut and the Coordination Bureau of
Economic Organizations, by virtue of expansion orders issued in accordance with relevant labor laws by the Israeli Ministry of Labor and
Welfare, and which apply such agreement provisions to our employees even though they are not directly part of a union that has signed
a collective bargaining agreement. The labor laws and court rulings that apply to our employees principally concern the minimum wage laws,
procedures for dismissing employees, determination of severance pay, leaves of absence (such as annual vacation or maternity leave), sick
pay and other conditions for employment. The expansion orders that apply to our employees principally concern the requirement for length
of the workday and workweek, mandatory employer’s payments to employees’ pension funds, annual recreation allowance, travel
expenses payment and other conditions of employment.

There have been attempts, including recently, by the Histadrut
to organize and establish a representative labor union for our Israeli employees. Under Israeli law, establishing a representative labor
union requires that at least one-third of the Israeli employees join the Histadrut and in such case, all employees would be liable to
pay its membership fees. While the Histadrut’s attempts have not succeeded to date, if a representative labor union would
be established in the future, we would need to conduct negotiations with the representative labor union and the Histadrut regarding the
employees’ terms of employment and benefits.

Under the special collective