Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 66

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 66
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, respectively, and includes loans, operating leases and capital leases.

Based on our current operations and expected short term growth,
our cash generated from operations, our current and expected available lease lines with third-party leasing companies and our existing
balance of cash and deposits, we have sufficient resources to meet our cash needs for operating activities and capital expenditures for
our existing fabs, equipping the facility in Agrate, Italy and the capacity corridor at Intel’s New Mexico fab, as well as the repayment
of our debt in the short term and long term.

If we execute an acquisition transaction(s), or a joint partnership
or another large transaction to expand our capacity, including for the funding of equipment for further expansion of the facility established
by ST in Agrate, Italy, acquiring leased assets and/or acquiring and/or establishing additional fabs and/or capacity through other capacity
acquisition related transactions, we may utilize our current cash balance and deposits and/or may be required to secure additional financing,
including by way of public or private offerings of equity and/or debt and/or re-financing or other financing alternatives. The timing,
terms, size and pricing of any future fundraising, if any, would be subject to the then-prevailing capital market conditions and our business
and financial situation, as well as the need to obtain certain regulatory and other consents. There is no assurance that we would be able
to obtain the necessary consents and/or funding in a timely manner, in sufficient amount or on favorable terms. See “ Item 3. Key
Information - D. Risk Factors - Risks Affecting Our Business - We may be required to obtain
financing for capacity acquisition related transactions, strategic and/or other growth or M& A opportunities, which we may not be able
to obtain.”

43

Recent Financing Transactions

Capital Leases

Certain of our subsidiaries enter into capital lease agreements,
from time to time, for machinery and equipment, usually for a period of four years, with an option to buy the machinery and equipment
after a period of between three to four years from the start of the lease period. These lease agreements contain annual interest rates
of approximately 2%, and the assets under the lease agreements are pledged to the lender until the time at which the respective subsidiary
acquires the assets. The obligations under the capital lease agreements are guaranteed by Tower, except for TPSCo’s obligations
under its capital lease agreements.

In addition, TPSCo leases its facilities and buildings in Japan
from NTCJ under a long-term capital