Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 24

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 24
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 required under the Listing Rules
of the Nasdaq Stock Market for domestic U. S. issuers, provided that we disclose the requirements we are not following and describe the
home country practices we are following (see “ Item 16G Corporate Governance”). The public reporting and disclosure rules to
which we are subject under the Exchange Act, and the corporate governance practices that we are permitted to follow, may provide less
protection to our investors than is accorded to investors under rules applicable to domestic U. S. issuers.

16

We do not expect to pay dividends in the foreseeable future.

We currently intend to use our future cash and earnings, along
with our existing cash balance and deposits, to finance our growth and acquisition strategy, as well as capacity growth, our ongoing operations
and our other business and operational needs, including the buildout of the Agrate facility, the $350 million capital expenditure required
to support our SiPho and SiGe capability and capacity growth in Fabs 2, 7 and 9, and the planned investment of up to $300 million for
equipment to be located in Intel’s Fab 11. Therefore, we do not anticipate paying dividends in the foreseeable future. We may, however,
use our existing cash balance and/or future cash earnings to execute share repurchases. Our board of directors has sole discretion whether
to pay dividends or adopt a share repurchase program. If our board of directors decides in the future to pay dividends or adopt a share
repurchase program, the form, timing, frequency and amount will depend on several factors, including our future growth and acquisition
strategy, our capacity growth plans, future operations and earnings, capital requirements and surplus, general financial condition, contractual
and legal restrictions, the trading price of our ordinary shares and other factors that our directors may deem relevant. The Israeli Companies
Law, 1999 (the “ Companies Law”) and regulations thereunder impose conditions on our ability to declare and pay dividends and/or
execute share repurchases. Payment of dividends and share repurchases may also be subject to Israeli withholding taxes. See Exhibit
2.1 “ Description of Securities - Dividend and Liquidation Rights” and “ Item 10. Additional Information - E.
Taxation - Israeli Taxation” for more information. Therefore, if you consider investing in our ordinary shares, you should not
rely on future dividend income and/or share repurchases, and any gains from the investment will likely depend on the price performance
of our traded ordinary