Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 12

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 12
---
 in expenses not deductible for tax purposes or deductible over a longer period of time than expected, or changes in available  

  changes in income tax codes or foreign tax laws or their interpretation;  
 ────────────────────────────────────────────────────────────────────────────

  changes, reduction, cancellation or discontinuation of the tax benefits provided to a “ Preferred Enterprise” and its            

  Adoption and implementation of a global minimum corporate tax rate under Pillar Two of the Organization for Economic Cooperation           

Our business could suffer if we are unable to retain and recruit
qualified personnel.

We depend on the continued services of our senior executive officers,
senior managers and skilled technical and other personnel, and there is intense competition for the services of these personnel in the
semiconductor industry. Our business could suffer if we lose the services of some of these senior executives and key personnel due to
resignation, medical absence, illness or other reasons, and cannot find, hire and integrate adequate replacement senior executives and
key personnel in a timely manner.

We do not typically operate with any significant
backlog, which makes it difficult for us to forecast our revenues and margins in future periods.

Our customers generally do not place purchase orders far in advance,
partly due to the cyclical nature of the semiconductor industry. Since our expense levels are based in part on our expectations of future
revenues, we may be unable to adjust costs in a timely manner to compensate for revenue shortfalls caused by cancellations, rescheduling
of orders or lower actual orders than quantities forecasted. Rescheduling may relate to quantities or delivery dates, and, sometimes,
to the specifications of the products we are shipping. Consequently, we cannot be certain that orders on backlog will be shipped when
expected or at all.

We expect that, in the future, our revenues in any quarter will
continue to be substantially dependent upon purchase orders received in the immediately preceding quarter or two. We cannot assure you
that any of our customers will continue to place orders with us in the future at the same levels as in prior periods. For these reasons,
our backlog at any given date may not be a reliable indicator of our future revenues and, as a result, revenue and margins’ forecasts,
targets and guidance that we provide from time to time, may fall short of expectations.

9

We may be left with excess inventory because
we may start processing wafers in the absence of a matching purchase order.

While our business model is to start processing wafers in an amount
matching each customer