Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 162

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 162
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.2 million and resulted from the gain on sale of machinery and equipment, net, to third
parties following the reorganization and restructuring of our Japan operations during 2022, as described in Note 13B(2) to our financial
statements for the year ended December 31, 2024.

Restructuring income, net, for the year ended December 31, 2024
amounted to $6.3 million, as compared to $19.7 million restructuring expense, net, for the year ended December 31, 2023, resulting from
the reorganization and restructuring of our Japan operations executed during 2022, as described in Note 13B(2) to our financial statements
for the year ended December 31, 2024.

Merger-contract termination fee, net, for the year ended December
31, 2023 amounted to $313.5 million, net of associated fees, and was paid to the Company by Intel following the announced termination
of the merger agreement, as described in Note 1 to our financial statements for the year ended December 31, 2024. There was no merger-contract
termination fee, net, for the year ended December 31, 2024

Operating profit for the year ended December 31, 2024 amounted
to $191.3 million as compared to $547.3 million for the year ended December 31, 2023. The $356.0 million decrease in operating profit
resulted mainly from the $313.5 million merger-contract termination fee, net, and the $52.2 million restructuring gain from the sale of
machinery and equipment, net, recorded during the year ended December 31, 2023, as well as the $14.1 million decrease in gross profit
for the year ended December 31, 2024, partially offset by the $26.0 million increase in restructuring income, net, as described above.

41

Financing income, net, for the year ended December 31, 2024 amounted
to $50.8 million as compared to $30.5 million for the year ended December 31, 2023. The $20.3 million increase in financing income, net,
is primarily due to higher interest income on increased bank deposits.

Other expense, net, for the year ended December 31, 2024, amounted
to $24.7 million as compared to other income,