Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 160

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 160
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, and the return
on these investments may be lower than we expect and these investments may significantly reduce our net profit and cash balance, and require
us to raise additional funds by way of debt or equity offerings. In addition, as we invest in expanding our operations into new areas
globally, our business and results will become further subject to the risks and challenges of operations in those locations, including
potentially higher fixed costs and operating expenses, the potential impact of legal and regulatory developments, and high depreciation
of fixed assets, all of which may reduce our profitability.

New Accounting Pronouncements

For recently issued accounting pronouncements, see Note 2X and
Note 2Y to our annual financial statements included herein.

RESULTS OF OPERATIONS

For a discussion of our results of operations for the year ended
December 31, 2022, including a year-to-year comparison between 2023 and 2022, refer to Item 5. “ Operating and Financial Review and
Prospects” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the SEC on April 22, 2024.

You should read the following discussion and analysis of our financial
condition and results of operations in conjunction with the financial statements and the related notes thereto included in this annual
report. The following table sets forth certain statement of operations data as a percentage of total revenues for the years indicated.

                                                                    Year ended December 31,             
                                                                    Year ended December 31,             
                                                                                       2024             
 ────────────────────────────────────────────────────────────────────────────────────────────────────────
  Statement of Operations Data:                                                                         
  Revenues                                                                              100        100  
  Cost of revenues                                                                     76.4       75.2  
  Gross profit                                                                         23.6       24.8  
  Research and development expense                                                      5.5        5.6  
  Marketing, general and administrative expense                                         5.2        5.1  
  Restructuring gain from sale of machinery and equipment, net                           --       (3.7  
  Restructuring expense (income), net                                                  (0.4        1.3  
  Merger-contract termination fee, net                                                   --      (22.0  
  Operating profit                                                                     13.3       38.5  
  Financing income, net                                                                 3.5        2.1  
  Other income (expense), net