Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 36

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 36
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 rapidly
and cost effectively. We believe that our technological strengths and emphasis on customer service have allowed us to develop a unique
position in large, high-growth specialized markets for silicon photonics in AI and Data Center communications, RF in smart phone, IoT
and infrastructure communications, power management in industrial, automotive and consumer end markets and CMOS image sensors.

Our manufacturing process is using specialty process technologies,
mostly based on CMOS process platforms with added features to enable special and unique functionality, decreased footprint of products,
competitive performance and cost advantages for analog and mixed-signal semiconductors. Products made with our specialty process technologies
are typically more complex than products made using standard process technologies employing similar technology nodes. Generally, customers
that use our specialty process technologies cannot easily transfer designs to another foundry because the analog characteristics of the
design are dependent upon the specific process technology used. The specialty process design infrastructure is complex and includes design
kits and device models that are specific to the foundry in which the process is implemented and to the process technology itself. In addition,
the relatively small engineering community with specialty process expertise and the significant investment required for development or
transfer and maintenance of specialty process technologies has limited the number of foundries capable of offering specialty process technologies.
We believe that our specialized process technologies combined with dedicated design enablement capabilities distinguish our services and
attract industry-leading customers.

We also offer process transfer services to IDMs that wish to use
their own technologies and processes. Our process transfer services are also used by fabless companies with proprietary process flows
that wish to have an additional supplier for purposes of geographic diversity or for the manufacture of an advanced technology node that
is very costly to build themselves. Our process transfer services include development, transfer, and extensive optimization as defined
by customer needs.

With our world-class engineering team, well established foundry
process methodologies and vast experience, we offer state of the art factories for core bulk CMOS and specialized technologies such as
RF SOI, silicon photonics, SiGe and MEMS, among others.

24

We are a trusted, customer-oriented service provider that has built
a solid reputation in the foundry industry over more than thirty years. We have built strong relationships with customers. Our consistent
focus on providing high-quality, value-added services, including engineering and design support, has allowed us to attract customers that
seek to work with a proven provider of foundry solutions. Our emphasis on working closely with customers and accelerating the time-to-market
and performance of