Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 18

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 18
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 to us, our customers’
products may be delayed, resulting in underutilization of our capacity. If any of our intellectual property vendors goes out of business,
liquidates, merges with, or is acquired by, another company that discontinues the vendor’s previous line of business, or if we fail
to maintain or acquire licenses to such intellectual property for any other reason, our business may be adversely affected.

Compliance with existing or future governmental
export regulations may reduce our sales or increase our operational costs.

The export of wafers from our foundries to the destinations requested
by our customers may be subject to U. S., Israeli, Italian and/or Japanese export control and other regulations established by other countries.
Compliance with existing or evolving U. S., Israeli, Italian, Japanese or other applicable governmental regulations or obtaining timely
domestic or foreign regulatory approvals or certificates may materially disrupt our business such as by reducing our sales or requiring
extensive modifications to processes that we use, which could increase our operational costs or require extensive modifications to our
customers’ products. We may not export products using or incorporating controlled technology without obtaining an export license,
which may not always be granted. Similarly, we may be required to obtain export licenses for equipment we may seek to sell, and such licenses
may not be granted in a timely manner or at all. These restrictions may make foreign competitors who are subject to less stringent controls
on the export of their products more competitive in the global market. In addition, within our compliance procedures and export control
assessments, we use certain software tools to flag sanctioned entities and require our customers to complete certain forms to provide
required information. If such information is provided inaccurately or insufficiently, we may unknowingly violate applicable regulations,
which could expose us to fines, penalties, or restrictions on our export activities.

If certain of our wafers are defective, we
may be subject to end customers’ product liability claims or other claims which could damage our reputation and harm our business.

If our wafers are defective, we may be subject to product liability
claims, as well as possible recall requests, safety alerts or advisory notices, despite our customary terms and conditions stating that
we have no such liability for any such failures that may be caused to the end users. We cannot assure you that our terms and conditions
will not prevent end users or other customers from filing charges against us or seeking damages from us or that our insurance policies
will compensate us fully for claims that may be made against