Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 71

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 71
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 the utilization of our
fabs, by attracting new customers and opportunities.

We seek to maintain capital efficiency by leveraging our operational
model and ensuring cost-effectiveness. With a global capacity footprint, including seven fabs in three continents, we are
focused on sharing and applying best practices across the organization, to provide our customers with high quality solutions, along with
the applications knowledge and technical support that allow them to benefit from a competitive edge in the market. Our geographical diversity
allows us to perform an internal benchmark across global facilities to gain knowledge on work processes and methodologies, thereby ensuring
that we maintain a high level of operations across all facilities at which we manufacture. Our global foothold also provides our customers
with flexibility and business continuity in terms of maximum opportunity for capacity availability.

Over the last several years, we have been constantly looking to
expand our presence in the global markets, penetrate new geographical areas, increase our served markets and expand our technology offering
through business and development ventures.

This may also be accomplished through (i) establishment of new
facilities with third party collaboration and/or funding, (ii) mergers and acquisitions with potential target facilities that may include
a solid base of customer demand to fill the increase in capacity, and/or (iii) development of technologies that may expand our servable
and/or available market potential, and increase our revenue, customer base and margins. Such transactions are also beneficial as they
provide our customers with capacity diversification and opportunity for additional growth through access to increased capacity. We continuously
evaluate potential acquisition opportunities and seek to secure additional capacity. Our current cash balance and deposits may be used
to enable us to realize and execute on such opportunities, and we may require additional financing through, among others, debt (including
convertible debt, bonds, notes or debentures) and/or equity issuances (including shares and warrants), in order to consummate such opportunities
and/or fund our other operational and capital expenditure cash needs, as well as our strategy to expand our global footprint, capacity
and capabilities. During 2024, we continued to increase our investments in property and equipment to expand the capacities and capabilities
of our existing fabs, our shared fab in Italy, and our capacity corridor in the New Mexico fab and also initiated an investment plan of
$350 million to create and/or increase capacity and capabilities for SiGe and SiPho in Fabs 2, 7 and 9.

E. CRITICAL ACCOUNTING ESTIMATES

Our financial statements are prepared in accordance with