Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 31

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 31
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In March 2014, we acquired from Panasonic 51% of a newly established
company, TPSCo, that became a foundry for the sale of wafers to Panasonic and other third-party customers, using three factories established
by Panasonic in Hokuriku Japan (Uozu E, Tonami CD and Arai E). Pursuant to the transaction, Panasonic transferred its capacity tools
(8 inch and 12 inch) at these three fabs to TPSCo. TPSCo focuses on 65nm and 180nm geometries for RF, power management and CMOS image
senor wafers, products and applications. In July 2022, the operations in Japan were reorganized and restructured such that the Arai factory,
which solely served NTCJ and did not serve Tower or TPSCo foundry customers, ceased operations. The operations at the Uozu and Tonami
facilities remain unchanged.

In February 2016, we acquired Fab 9, located in San Antonio, Texas,
U. S., from Maxim. The assets and related business that we acquired from Maxim are held and conducted through one of our wholly owned U. S.
subsidiaries, Tower SA. Fab 9 supports process geometries ranging from 0.80-micron to 0.18-micron using CMOS, power management and analog
based technologies.

In 2021, we entered into an agreement with ST to share, under a
collaborative arrangement, a 300mm facility being constructed by ST in Agrate, Italy, following which TSIT, a wholly-owned Italian subsidiary
of Tower, was incorporated. TSIT and ST share the cleanroom space and facility infrastructure, and TSIT has the right to use one-third
of the installed capacity for its foundry customers, which we refer to as “ Fab 10.” As part of the qualification and
ramp-up process, TSIT acquired and installed certain of its own equipment in the Agrate facility and developed certain processes and technologies.
The comprehensive qualification process was completed during the fourth quarter of 2024, following which volume production and operations,
which are managed by ST, commenced.

In September 2023, Tower and Intel entered into an agreement under
which a capacity corridor is being established in Intel’s 300mm facility in New Mexico, U. S., which we refer to as “ Fab 11.”
In accordance with this agreement, Tower is investing up to $300 million