Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 4

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 4
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 whole or in part, in a timely manner or at all; (ii) be unable to assure next generation customers’
products; or (iii) experience operational bottlenecks, which may cause low or slow performance and/or halt operations and may adversely
affect our cycle time, yield and delivery schedule. As a result, we could lose one or more of our current and/or potential customers,
which may adversely affect our reputation, revenues, profitability and business.

If we do not maintain and develop our technology
processes and services, we may lose customers and may be unable to attract new ones.

The semiconductor market is characterized by rapid change, including
rapid technological developments, evolving industry standards, changes in customer and end-user requirements, frequent new product introductions
and enhancements, and short product life cycles with declining prices as products mature. Our ability to maintain our current customer
base and attract new customers is dependent in part on our ability to continuously develop advanced specialized process technologies that
can be processed in our fabs and purchase the appropriate equipment, and to keep pace with new technology, including artificial intelligence,
evolving standards, changing customer and end-user requirements, new product introductions and shorter product life cycles. If we are
unable to successfully develop such process technologies and provide our services in a timely manner or at all, or if we are unable to
purchase the appropriate equipment required for such processes and services, we may be unable to maintain our current customer base and
may be unable to attract new customers.

3

The foundry business is highly competitive,
and our competitors may have competitive advantages over us.

Many of our competitors may have one or more of the following competitive
advantages over us: greater capacity and/or availability of same; a more diverse and established customer base; greater financial, sales,
marketing, distribution and other resources; governmental funding or support (such as receipt of financial incentives under the Chips
and Science Act of 2022); better cost structure; and/or better operational performance, including cycle time and yields. If we do not
compete successfully, our business and financial results may be adversely affected.

We compete most directly in specialty segments with certain independent
dedicated foundries. We also compete with pure play advanced technology node driven foundry service providers, as they each have some
capacity for specialty process technologies, and with integrated device manufacturers (“ IDMs”) that allocate a portion of
their capacity to foundry operations. As our competitors continue to expand their capacity, there could be an increase in specialty found