Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 163

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 163
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 net, of $7.0 million for the year ended December 31, 2023. Other income (expense), net,
primarily includes non-recurring, non-operational items, such as gains from the sale of investments in privately held companies and gains
(losses) from the sale of unused machinery and equipment.

Income tax expense, net, for the year ended December 31, 2024 amounted
to $10.2 million as compared to $65.3 million for the year ended December 31, 2023. The $55.1 million decrease in income tax expense,
net, is primarily due to a $367.4 million decrease in profit before income tax for the year ended December 31, 2024 as compared to the
year ended December 31, 2023, which mainly resulted from the $313.5 million merger-contract termination fee, net included in operating
profit for the year ended December 31, 2023, as described above.

Net profit for the year ended December 31, 2024 amounted to $207.2
million as compared to $519.5 million for the year ended December 31, 2023. The $312.3 million decrease in net profit is primarily due
to the decrease in operating profit (in connection with the merger-contract termination fee received in 2023), partially offset by
the decrease in income tax expense, net, described above.

Net loss attributable to non-controlling interest for the year
ended December 31, 2024 amounted to $0.6 million as compared to net profit attributable to non-controlling interest of $1.0 million for
the year ended December 31, 2023. The $1.6 million decrease resulted from a $3.4 million decrease in the net profit of TPSCo, in which
we hold 51%.

Net profit attributable to the Company for the year ended December
31, 2024 amounted to $207.9 million as compared to $518.5 million for the year ended December 31, 2023. The $310.6 million decrease in
net profit attributable to the Company is mainly due to the decrease in net profit of $312.3 million, offset by the $1.6 million decrease
in net profit attributable to non-controlling interest, as described above.

Impact of Currency Fluctuations

We currently operate in four different regions: the United States,
Japan, Israel and Italy.