Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 62

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 62
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 $1,069.2 million for the year ended December 31, 2023. The $27.5 million increase in cost of revenues
reflects a 2.6% year over year cost increase, mainly due to higher depreciation and manufacturing costs.

Gross profit for the year ended December 31, 2024 amounted to $339.4
million as compared to $353.5 million for the year ended December 31, 2023. The $14.1 million decrease in gross profit resulted from the
$27.5 million, or 2.6%, increase in cost of revenues, net of the $13.4 million, or 1%, increase in revenues, as described above.

Research and development expenses for the year ended December 31,
2024, amounted to $79.4 million, as compared to $79.8 million for the year ended December 31, 2023, reflecting less than a 0.5% decrease
year over year.

Marketing, general and administrative expenses for the year ended
December 31, 2024 amounted to $75.0 million, reflecting 5.2% of revenues, as compared to $72.5 million for the year ended December 31,
2023, reflecting 5.1% of revenues.

Restructuring gain from sale of machinery and equipment, net, for
the year ended December 31, 2023 amounted to $52.2 million and resulted from the gain on sale of machinery and equipment, net, to third
parties following the reorganization and restructuring of our Japan operations during 2022, as described in Note 13B(2) to our financial
statements for the year ended December 31, 2024.

Restructuring income, net, for the year ended December 31, 2024
amounted to $6.3 million, as compared to $19.7 million restructuring expense, net, for the year ended December 31, 2023, resulting from
the reorganization and restructuring of our Japan operations executed during 2022, as described in Note 13B(2) to our financial statements
for the year ended December 31, 2024.

Merger-contract termination fee, net, for the year ended December
31, 2023 amounted to $313.5 million, net of associated fees, and was paid to the Company by Intel following the announced termination
of the merger agreement,