Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 46

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 46
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 elect to design these advanced CMOS processes into their next-generation products. We are not currently capable,
nor do our current plans include any technology or operations using CMOS processes at such smaller geometries.

WAFER FOUNDRY SERVICES

The wafer foundry service mode of work is an intricate process
that consists of constructing layers of conducting and insulating materials on raw wafers in intricate patterns. This requires hundreds
of interrelated steps performed on different types of equipment, and each step must be completed with extreme accuracy to achieve the
required device performance metrics. The process can be summarized as follows:

Circuit Design. This process
begins when a fabless company or IDM designs (or engages a third party or us to design) the layout of a device’s components and
designates the interconnections between each component. The result is a pattern of components and connections that defines the function
of the end product. After the product design is completed, foundries provide processing services for these companies’ device designs.

Mask Making. The design
for each layer of a semiconductor wafer is imprinted on a photographic negative, called a reticle or mask, which serves as the blueprint
for each specific layer of the semiconductor wafer. We engage external mask shops for the manufacture of these masks.

Wafer Processing. This
involves a series of processes in which photosensitive material is deposited on the wafer and exposed to light through a mask, including
hundreds of steps (moves) per wafer, such as photolithography, oxidation, etching, stripping of different layers and materials, ion implantation,
deposition of thin film layers, chemical mechanical polishing, and thermal processing. The final step is wafer probing, which involves
inspection of each unit in order to identify those that are operable for assembly. Customers often use third-party service providers for
the performance of wafer probing.

Assembly and Test. In this
phase, the wafers are transferred to assembly and test facilities. During the assembly process, each wafer is cut into dies, or individual
semiconductors, and tested. Defective dies are discarded, while good dies are packaged and assembled. Assembly protects the product, facilitates
its integration into the target systems, and enables heat dissipation. Following assembly, the functionality, voltage, current and timing
of each product are tested. After testing, the completed product is shipped either to our customer or to their customer’s printed
circuit board manufacturing facility