Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 19

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 19
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 us. In addition, we may be unable to obtain insurance in the future at satisfactory
rates, with adequate coverage, or at all. Product liability claims or product recalls in the future, regardless of their ultimate outcome,
may have a material adverse effect on our business, reputation, financial condition and our ability to attract and retain customers.

13

A workforce that is unionized may have an adverse
impact on our costs, may disrupt our operations by potential work stoppages, strikes or other collective actions and adversely affect
our operational and financial results.

Significant portions of the employees at Fab 3 and at TPSCo’s
fabs in Japan are represented by unions and covered by collective bargaining agreements. We cannot predict the effect that union representation
or future organizational activities will have on our operational cost and business. We cannot assure you that our fabs will not experience
a material work stoppage, strike or other collective action in the future, or incur increased costs in connection with the renewal
of such bargaining agreements or other potential union activities, which may disrupt our fabs’ continued operations, its costs,
operational performance metrics, and our operational and financial results. In addition, there have been attempts, including recently,
by the General Federation of Labor in Israel (“ 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 with regards to the terms of employment and benefits of the employees, which could
result in the incurrence of additional labor costs and/or work stoppages, which in turn could adversely affect our business and financial
results.

Climate change may negatively affect our business.

There is significant concern regarding climate change and its potential
dramatic effects on human activity if no aggressive remediation steps are taken. Legislative developments with respect to reductions in
greenhouse gas emissions may result in increased energy, transportation and raw material costs. Scientific examination of, political attention
to, and rules and regulations on, issues surrounding the existence and extent of climate change may result in increased operational costs
due to increase in the prices of energy and introduction of energy or carbon tax. A variety of regulatory developments have been