Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 6

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 6
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 and other permits required for our operations and the sale of our services; our ability
to maintain existing partners and customers; interest, price index and currency rate fluctuations that were not hedged; and changes in
accounting rules affecting our results.

These factors and risks make it difficult to predict our future
performance and may ultimately negatively affect our operating results and financial position.

4

If we do not maintain our current key customers,
and/or do not attract new key customers, our business and profitability may be adversely affected.

Loss or cancellation of business from, or decreases in the sales
volume or sales prices to, our significant customers, or our failure to replace lost business with new customers, may seriously harm our
financial results, revenues and business. We have relationships with several customers that represent a material portion of our revenues.
In 2024, 13% of our revenues were generated from NTCJ, 27% of our revenues were derived from an additional four customers, each of which
generated between 3% to 11% of our revenues, and the remaining 60% of our revenues were derived from many other smaller customers. In
2023, 14% of our revenues derived from NTCJ, and 30% of our revenues derived from an additional four customers, each of which generated
between 3% to 9% of our revenues, and the remaining 56% of our revenues derived from many other smaller customers. While we renegotiate
the terms of our commercial agreements from time to time with our customers, there is no assurance as to the financial impact of any revised
terms between us and our customers or the volume of orders they may continue to place based on any revised terms. The loss or reduction
in volume or sales price to any of our key customers, whether due to business negotiation, termination or expiration of their signed contract(s),
the lack of demand in their markets, their insolvency or their unwillingness or inability to perform their obligations under their respective
engagements with us, or our inability to (i) renew our engagements with them on commercially reasonable terms, (ii) fulfill their demand
and supply them with wafers with successful performance metrics, or, alternatively, (iii) attract new customers to replace such lost business,
may materially negatively impact our overall business, revenues and profitability.

Our financial results may be adversely affected
if we are unable to operate our facilities at satisfactory utilization rates necessary to generate and maintain positive and sustainable
gross, operating and net profits.

As