Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 5

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 5
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ry
capacity. To the extent specialty capacity increases, there may be more competition and pricing pressure on our services, which may result
in underutilization of our capacity, decreased profit margins, reduced earnings or increased losses.

In addition, some semiconductor companies have advanced their complementary
metal oxide semiconductor (“ CMOS”) designs to smaller than 10 nanometer process geometries. These smaller process geometries
may provide customers with performance and integration features that may be comparable to, or exceed, features offered by our specialty
process technologies. The smaller process geometries may also be more cost-effective at higher wafer volumes for certain applications.
We are not currently capable, and do not currently plan to become capable, of providing CMOS processes at these smaller process geometries.
If our potential or existing customers choose to design their products in a manner whereby the percentage of digital content in specialty
designs increases significantly and requires these advanced CMOS processes, our business may be negatively impacted.

Our financial results may fluctuate from quarter
to quarter, making it difficult to forecast our future performance.

Our revenues, expenses and operating results may fluctuate significantly
from quarter to quarter due to a number of factors which may be beyond our control. These factors include, among others: the cyclical
nature of the semiconductor industry and the volatility of the markets served by our customers; changes in the economic conditions of
geographical regions where our customers and their markets are located (including global recession, credit crises and/or tariffs); inventory
and supply chain management of our customers; the loss of a key customer, not attracting new designs from key customers, postponement
of an order from a key customer or the rescheduling or cancellation of large orders; the occurrence of accounts receivable write-offs,
failure of a key customer to pay accounts receivable in a timely manner, the financial condition of certain of our customers and regulatory
or other tariffs or charges that may be imposed in a region in which customers reside; the occurrence of an unexpected event, such as
environmental events, an epidemic or pandemic, industrial accidents such as fire or explosions, or electricity outage, that may affect
the manufacturing process or shipment of quality products without charging our customers significant additional costs; the timing
and volume of orders from customers; our ability to obtain raw materials and equipment on a timely and cost-effective basis; price erosion
in the industry and our ability to negotiate prices with our current and new customers; our susceptibility to intellectual property rights’
disputes; our dependency on export licenses