Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 28

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 28
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 in Israel addressing
the matters described above.

Provisions of Israeli law
may delay, prevent or otherwise impede a merger with, or an acquisition of, all or a significant portion of our shares or assets, which
may delay or prevent a change of control, even when the terms of such a transaction are favorable to us and/or our shareholders.

Provisions of Israeli law could have the effect of delaying or
preventing a change in control and may make it more difficult for a third-party to acquire all or a significant portion of our shares
or assets, even if doing so would be considered to be beneficial by some of our shareholders. Among other things, Israeli corporate law
regulates mergers, requires tender offers for acquisitions of shares of a public company above specified thresholds, requires special
approvals for transactions involving directors, officers or significant shareholders and regulates other matters that may be relevant
to such types of transactions. Furthermore, Israeli tax considerations may make potential transactions unappealing to Tower or to its
shareholders whose country of residence does not have a tax treaty with Israel exempting such shareholders from Israeli tax. For example,
with respect to mergers, Israeli tax law allows for tax deferral in certain circumstances but makes the deferral contingent on the fulfilment
of numerous conditions, including a holding period of two years from the date of the transaction during which certain sales and dispositions
of shares of the participating companies are restricted. Moreover, with respect to certain share swap transactions, the tax deferral is
limited in time, and when such time expires, the tax becomes payable, even if no actual disposition of the shares has occurred.

19

The rights and responsibilities
of our shareholders will be governed by Israeli law which differs in some material respects from the rights and responsibilities
of shareholders of U. S. corporations.

The rights and responsibilities of the holders of our ordinary
shares are governed by our articles of association and by Israeli law. These rights and responsibilities differ in some material respects
from the rights and responsibilities of shareholders in typical U. S. registered corporations. In particular, a shareholder of an Israeli
company has certain duties to act in good faith and in a customary manner in exercising his or her or its rights and fulfilling his or
her or its obligations towards the company and other shareholders and to refrain from abusing its power in the company, including, among
other things, in voting at the general meeting of shareholders on amendments to a company’s articles of association, increases in
a company's authorized share capital