Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 9

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 9
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 interruption insurance, which may compensate us partially or fully against certain types of damages, we cannot ensure that our
insurance coverage will compensate us fully for all of the losses we may incur and that such events will not have a negative effect on
the Company’s business and financial situation.

Possible wafer returns could harm our business.

Wafers we deliver to our customers may be returned within specified
periods if they are defective or otherwise fail to meet prior agreed upon specifications. Future customer returns may have an adverse
effect on our business and financial results.

We are subject to risks related to our international operations.

We generate revenues from customers located in the United States,
Europe and Asia-Pacific. Because of our international operations, we are vulnerable to the following risks:

  JPY and NIS fluctuations against the USD – see the risk factor below entitled: “ Our                        
  exposure to currency exchange and interest rate fluctuations may impact our costs and financial results ”;  
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  the burden and cost of compliance with foreign government regulation, as well as compliance with a variety of foreign laws, and the      

  general geopolitical risks, such as political and economic instability, international terrorism, potential hostilities and changes  

  adverse foreign and international tax rules and regulations, such as withholding taxes deducted from amounts due to us  

  weak protection of our intellectual property rights in certain foreign countries;  

  delays in wafer shipments due to local customs restrictions;  

  laws and business practices favoring local companies;  

  difficulties in collecting accounts receivable; and  

  difficulties and costs of staffing and managing foreign operations.  

The geographical distance between Israel, the United States, Japan
and the rest of Asia and Europe also creates certain logistical and communication challenges. In addition, recently, there has been a
significant increase in the imposition of tariffs and other trade restrictions around the world. Uncertainty surrounding the length,
severity, scope and timing of these trade actions may disrupt trade throughout the world which could result in the inability or unwillingness
of customers to purchase our products. The escalation or broadening of these trade actions could also significantly increase our costs
or make it more difficult for us to sell our products, which could materially and adversely affect our business. We cannot assure
you that we will be able to sufficiently mitigate all the risks related to our international operations.

6

Our financial position and operations may be affected as a result
of our long-term debt.

As of December 31