Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 193

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 193
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 the board of directors.

58

Director Independence

In accordance with the exemption from the Israeli law requirement
to have external directors serving on our Board of Directors, we comply with the director independence requirements and the audit committee
and compensation committee composition requirements under U. S. laws (including applicable Nasdaq Stock Market rules) applicable to U. S.
domestic issuers. In addition, the composition of our corporate governance and nominating committee complies with the requirements of
the Nasdaq Listing Rules applicable to U. S. domestic issuers. Under the Nasdaq Listing Rules, a majority of the board of directors must
be comprised of independent directors (as defined in the Nasdaq Listing Rules). Our board of directors has made a determination of independence
under the Nasdaq Listing Rules with respect to all directors, other than Mr. Ellwanger, our Chief Executive Officer.

Audit Committee

Our audit committee currently consists of Mr. Yoav Z. Chelouche,
Mr. Ilan Flato, Mr. Avi Hasson, Mrs. Iris Avner and Mr. Sagi Ben Moshe. Mr. Yoav Z. Chelouche serves as the audit committee chairman.

Composition requirements

The Companies Law requires public companies to appoint an audit
committee; however, following the Company’s determination to follow the relief with respect to external directors under the Relief
Regulations, as described above, the composition of our audit committee is governed by the rules set forth in the Nasdaq Listing Rules
and the Exchange Act.

Under Nasdaq Listing Rules, we are required to maintain an audit
committee consisting of at least three independent directors (within the meaning of the Exchange Act and Nasdaq Listing Rules), each of
whom must meet certain requirements for financial literacy and one of whom has accounting or related financial management expertise, and
none of whom has participated in the preparation of our or any of our subsidiaries financial statements at any time during the prior three
years.

The Board of Directors has determined that all of the members of
the audit committee meet the independence and financial knowledge requirements for audit committee service of the Nasdaq Listing Rules
and the Exchange Act. In addition, the Board of Directors has determined that Ilan Flato, Yoav Chelouche, Iris Avner and Avi Hasson
meet the Nasdaq Listing Rules requirement regarding financial sophistication and that each of the above is an audit committee financial
expert pursuant to the applicable SEC rules.

Audit Committee role

Our board of directors has adopted an audit committee