Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 16

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 16
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 We cannot assure you that we will, at all times, be able to
enforce our patents or other intellectual property rights, and it may be difficult for us to protect our intellectual property from misuse
or infringement by other companies. Further, we cannot assure you that courts will uphold our intellectual property rights or enforce
the contractual arrangements that we have entered into to protect our proprietary technology, which may reduce our opportunities to generate
revenues. In the event that we are unable to enforce our intellectual property rights, our business may be harmed.

11

We may also be a party to infringement claims in the future. In
the event any third party were to assert infringement claims against us or our customers, we may have to consider alternatives including,
but not limited to:

  attempting to negotiate cross-license agreements, which we might not succeed in negotiating or consummating;  

  acquiring licenses to the allegedly infringed patents, which may not be available on commercially reasonable terms, if at all;  
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  discontinuing use of certain process technologies, architectures, or designs, which could cause us to halt a portion of our operations  

  litigating the matter in court, which may result in substantial legal fees and paying substantial monetary damages in the event we  
  lose; or                                                                                                                            
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  developing non-infringing technologies, which may be costly or may not be feasible.  
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Any one or several of these alternatives may place substantial
financial and other burdens on us and hinder our business. If we fail to obtain certain licenses or if we are involved in litigation relating
to alleged patent infringement or other intellectual property matters, it may halt our operations with regards to particular product technologies,
which may adversely impact our business and revenues.

From time to time, we are a party to litigation that may require
management time and effort.

From time to time, we are a party to litigation incidental to the
conduct of our ongoing business, including class actions, disputes with customers, suppliers, employees, landlords, or other third parties.
Litigation requires a certain amount of management time and effort which may adversely affect our business by diverting management focus
from business needs.

In addition, our ability to compete successfully depends in part
on our ability to operate without infringing on