Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 8

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 8
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 obtain sufficient funding, if at all,
from these financing sources or other sources in a timely manner (or on terms that we consider reasonable) for such purposes or that we
will obtain the required approvals to execute fundraising activities and that such fundraising activities will be successful. If
approvals are not obtained and/or such fundraising activities are not successful, our financial position and operations may be adversely
affected.

5

Our continued operations and our operational
performance metrics and business could be significantly harmed, including stopping operations of our fabs for certain periods of time,
by natural disasters, particularly earthquakes, floods and fires, or due to power outages, water leaks, chemical leaks, supply chain or
other issues, which may cause our profitability and financial position to be adversely affected.

Our fabs in Israel, Southern California and Japan are located in
areas which are generally susceptible to seismic activity. Due to the complex and delicate nature of our technological processes, our
facilities are particularly sensitive to the effects of vibrations associated with even minor earthquakes. We cannot be certain that precautions
that any of our fabs have taken to seismically upgrade the fabs will be adequate to protect our facilities in the event of an earthquake.
Earthquakes may lead to fire in the fabs or other material damage. Also, we use highly flammable materials such as silane and hydrogen
in our technological processes and are therefore subject to risk arising from fire, which cannot be completely eliminated. We are also
subject to risk of floods, mostly in our Japan facilities.

Any damage resulting from earthquakes, floods, fires and other
natural disasters could seriously disrupt our continued operations, cause a loss of wafers, deterioration of our fab yield and substantial
downtime to reset equipment before resuming operations, which could cause a material adverse effect on our business, revenue and profits.

In addition, a power outage, even of very limited duration, and/or
water leaks, chemical leaks, shortages of parts or other materials which are required for our supply chain, or other issues, may result
in a loss of wafers, deterioration of our fab yield, cycle time and substantial downtime to reset equipment before resuming operations,
thereby potentially causing an immediate loss of revenue and profitability in a particular period, which may cause our profitability and
financial position to be adversely affected. Affected customers may elect to transfer their purchase orders to other foundries. While
we try to mitigate any potential damage caused by such events and maintain insurance policies for coverage of any potential losses, including
business