Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 65

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 65
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 31, 2024, the USD appreciated against the JPY by 10.7%, as compared to 7.2% appreciation during the year ended December
31, 2023. The net effect of USD appreciation against the JPY on TPSCo’s assets and liabilities denominated in JPY is presented in
the Cumulative Translation Adjustment (“ CTA”) as part of Other Comprehensive Income (“ OCI”) on the balance sheet.

42

The cost of the Company’s operations in USD in Israel is
influenced by changes in the USD-to-NIS exchange rate, with respect to expenses and costs that are denominated in NIS. During the
year ended December 31, 2024, the USD appreciated against the NIS by 0.6%, as compared to 3.1% appreciation during the year ended December
31, 2023. Appreciation of the NIS may increase the costs, in USD terms, of the Israeli facility, such as utilities, taxes and labor
costs that are denominated in NIS, which may lead to erosion of profit margins. We use foreign currency cylinder and forward transactions
to hedge a portion of this currency exposure and maintain it within a pre-defined fixed range.

The cost of our operations in Italy in USD is influenced by changes
in the USD-to-Euro exchange rate, with respect to expenses and costs that are denominated in Euro. During the year ended December
31, 2024, the USD depreciated against the Euro by 5.9%. This exposure is partially mitigated and maintained within a pre-defined fixed
range through foreign currency cylinder and forward transactions which we are engaging in.

B. LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2024, we had an aggregate of $271.9 million
in cash and cash equivalents, as compared to $260.7 million as of December 31, 2023. The main cash items during the year ended December
31, 2024 were as follows: $448.7 million, net, cash provided by operating activities; $431.7 million invested in property and equipment,
net; $31.9 million proceeds from sales of short-term deposits and marketable securities, net; and $32.5 million debt repaid, net.

Short-term and long-term debt as presented in the balance sheet
as of December 31, 2024 amounted to $48.4 million and $132.4 million