Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 11

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 11
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/or re-financing, sale of new securities, sale of intellectual property
and/or intellectual property licensing, as well as additional financing alternatives. However, there is no assurance that we will be able
to obtain sufficient funding, if at all, from the financing sources detailed above or other sources in a timely manner (or on commercially
reasonable terms) in order to allow us to fund our growth plans and/or cover, in a timely manner, all our costs, capital expenditure investments
and all of our scheduled debt detailed above, liabilities and obligations, which may adversely affect our financial position and operations.

7

If we are unable to manage fluctuations in
cash flow, our business and financial position may be adversely affected.

Our working capital requirements and cash flows are subject to
quarterly and yearly fluctuations, depending on a number of factors. If we are unable to manage fluctuations in cash flow, our business,
operating results and financial condition may be materially adversely affected. Factors which may lead us to suffer cash flow fluctuations
include:

  fluctuations in the level of revenues from our operating activities;  

  fluctuations in the collection of receivables;  

  timing and size of payables;  

  the timing and size of capital expenditure;  

  the net impact of JPY/ USD fluctuations on our JPY income and JPY cost;  

  the repayment schedules of our debt obligations;  

  our ability to fulfill our obligations and meet performance milestones under our agreements;  

  fluctuations in the USD to NIS and USD to Euro exchange rates; and  
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  the inflation rates in Israel, Japan, Italy and the United States.  

8

Changes in our effective tax rate may impact
our net income and increase our tax payments.

A number of factors can impact our future effective tax rate or
tax payments, which could cause fluctuation in our net margins and our financial results, including:

  changes in the volume and mix of profits earned across jurisdictions with varying tax rates;  
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  changes in our business or legal entity operating model;  
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  the resolution of issues, including transfer pricing implementation, arising from tax audits;  

  changes in the valuation of our deferred tax assets and liabilities, and in deferred tax valuation allowances;  
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  increases