Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 34

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 34
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 expertise, strong application specific experience and a comprehensive
intellectual property portfolio. In addition, today’s analog market is driven strongly by growing sensitivity to environmental requirements,
such as the conservation of energy and human well-being. Low power consumption is demonstrated in applications related to the systems
enabled with Artificial Intelligence (AI) and edge computing using AI which allow for the analysis and filtering of data closer to the
sensors such that only the relevant data is sent to the cloud. The AI edge devices are incorporated into products with sensors related
to Internet of Things (IoT), in particular ASICs with embedded sensors, medical devices and applications focused on entertainment, infotainment
and safety, which combine analog and digital technology.

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Mixed-signal devices are an essential part of any front-end product,
device and/or system. Our advanced analog CMOS process technologies have more features than standard analog CMOS process technologies
and are well suited for higher performance or more highly integrated analog and mixed-signal semiconductors, such as high-speed analog-to-digital
or digital-to-analog converters and mixed-signal semiconductors with integrated data converters. These process technologies generally
incorporate higher density passive components, such as capacitors and resistors, as well as improved active components, such as native
or low threshold voltage devices, and improved isolation techniques, into standard analog CMOS process technologies.

In recent years, silicon has also been used to control optical
signals in silicon-photonics (SiPho) technology. This technology reduces the cost of assembling optical transceivers, which convert optical
signals to electrical signals and vice versa, by providing a platform that integrates multiple functions on a single chip instead of requiring
multiple discrete components. Such technology utilizes much of the same semiconductor equipment used to manufacture CMOS, benefiting from
the extensive installed base and manufacturing efficiency.

The enormous costs associated with modern fabs, combined with the
increasing demand for complex products, have created an expanding market for outsourced foundry process manufacturing services. Foundries
can cost-effectively supply advanced process technology services to even the smallest fabless companies by creating economies of scale
through pooling the demand of numerous customers. In addition, customers whose IC designs require process technologies other than standard
digital CMOS have created a market for independent foundries that focus on providing specialized process technologies. Specialty process
technologies enable greater analog content and can reduce the die size of an analog or mixed-signal semiconductor, thereby increasing
the number of dice on each