Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 2

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 2
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  from the preliminary evaluation or that includes high cost that may result in losses incurred by us if we do not succeed in maintaining   
  high utilization levels to cover the cost;                                                                                                
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  We may not be able to obtain sufficient financing or financing on favorable terms, which could limit our ability to engage in certain  
  acquisitions and strategic engagements;                                                                                                
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  The amount or terms of financing actually required before and after acquisitions considering our current liquidity and cash position        
  may vary from our expectations, resulting in a need for more funding that may not be available to us in order to finance the acquisitions   
  and/or the operations of the target acquired and/or the acquisition of additional equipment that may be required to increase and/or adjust  
  the target’s operations to address our customer demand and specific technology flows; and                                                   
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  Delays or other issues may impact our ability to timely and successfully ramp up the capacity in such fabrication facilities, including  
  delays in the supply of equipment and/or parts by vendors, delays in equipment installation and/or the qualification schedule, and/or    
  delays in technology process qualification and/or new products’ qualifications.                                                          
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We may experience difficulty achieving acceptable
operational metrics and indices in the future as a result of operational, technological or process-related problems.

The semiconductor wafer process technology is highly complex, requires
advanced and costly direct and indirect materials as well as equipment, and is constantly being modified in an effort to improve operational
metrics and indices such as device yields, wafer performance and delivery times. Microscopic impurities such as dust and other contaminants,
difficulties in the operational processes, defects in the key materials and tools used to process wafers and other factors can cause
wafers to be rejected as non-functional or partially non-functional. Although we continuously enhance our process capabilities and efficiency,
from time to time we have experienced operational, technological and process-related problems that have caused extended production time
or quality control issues. Operational issues we may face include difficulties in upgrading or expanding existing facilities; unexpected
breakdowns in our equipment and/or related facility systems; unexpected events,