Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 68

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 68
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PY Loan and 2023 JPY Loan, the “ JPY Loans”).
As of December 31, 2024, 12.5 billion JPY (approximately $79 million) of the 2024 JPY Loan was drawn, of which 11.5 billion JPY (approximately
$73 million) was used to repay part of the 2021 JPY Loan and 2023 JPY Loan, and 3 billion JPY (approximately $19.0 million) remained outstanding
under the 2021 and 2023 JPY Loans. As a result, a total principal amount of 15.5 billion JPY (approximately $100 million) was outstanding
under all of the JPY Loans as of December 31, 2024.

In accordance with the terms of the 2024 JPY Loan agreement, during
the first half of 2025, (i) the 3 billion JPY (approximately $19 million) total principal amount, which remained outstanding as of December
31, 2024 under the 2021 JPY Loan and 2023 JPY Loan, is scheduled to be repaid, and (ii) an amount of 2 billion JPY (approximately $13
million), which remained available as of December 31, 2024 under the 2024 JPY Loan, is scheduled to be withdrawn.

The lenders under the 2024 JPY Loan are a consortium of financial
institutions consisting of (i) JA Mitsui Leasing, Ltd., (ii) Mitsubishi HC Capital Inc., and (iii) BOT Lease Co. Ltd. The 2024 JPY Loan
carries a fixed interest rate of 2% per annum, with principal payable in seven semiannual payments from December 2027 to December 2030.
The 2024 JPY Loan is secured mainly by a lien over the machinery and equipment of TPSCo located in the Uozu and Tonami facilities. The
2024 JPY Loan contains certain financial ratios and covenants, as well as customary definitions of events of default and acceleration
of the repayment schedule. TPSCo’s obligations pursuant to the 2024 JPY Loan are not guaranteed by Tower, NTCJ, or any of their
affiliates. As of December 31, 2024, TPSCo maintained compliance with all of the financial covenants under the 2024 JPY Loan.

44

C. RESEARCH AND