Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 93

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 93
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 next annual general meeting of shareholders (or until any
of their earlier resignation or removal in accordance with the Companies Law). In addition, our Articles of Association allow our board
of directors to appoint directors (other than the external directors) to fill vacancies on our board of directors, until the next annual
general meeting of shareholders.

External Directors

The Companies Law requires Israeli companies with shares that have
been offered to the public in or outside of Israel to appoint at least two external directors. However, pursuant to the Companies Regulations
(Relief for Companies Whose Shares are Registered for Trading Outside of Israel) - 2000 (the “ Relief Regulations”),
an Israeli public company whose shares are dual listed on the TASE and certain foreign (non-Israeli) stock exchanges, including the NASDAQ
Global Select Market, or are listed solely on a foreign (non-Israeli) securities exchange, may elect to exempt itself from the Companies
Law requirement to appoint external directors and related rules concerning the composition of the audit committee and compensation committee
of the board of directors if it meets both of the following conditions:

  The company does not have a controlling shareholder; and  

  The company complies with the requirements of the securities laws and stock exchange regulations in the foreign jurisdiction where      

In accordance with the Relief Regulations, we elected to “opt
out” from the Companies Law requirement to appoint external directors and related Companies Law rules concerning the composition
of the audit committee and compensation committee of the board of directors.

58

Director Independence

In accordance with the exemption from the Israeli law requirement
to have external directors serving on our Board of Directors, we comply with the director independence requirements and the audit committee
and compensation committee composition requirements under U. S. laws (including applicable Nasdaq Stock Market rules) applicable to U. S.
domestic issuers. In addition, the composition of our corporate governance and nominating committee complies with the requirements of
the Nasdaq Listing Rules applicable to U. S. domestic issuers. Under the Nasdaq Listing Rules, a majority of the board of directors must
be comprised of independent directors (as defined in the Nasdaq Listing Rules). Our board of directors has made a determination of independence
under the Nasdaq Listing Rules with respect to all directors, other than Mr. Ellwanger, our Chief Executive Officer.

Audit Committee

Our audit committee currently consists of Mr. Yoav Z. Chelouche,
Mr. Ilan Flato, Mr. Avi Hasson, Mrs.