Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 230

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 8
Chunk 230
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ITEM
8. FINANCIAL INFORMATION

A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL
INFORMATION

Consolidated Financial Statements.

See “ Item 18 - Financial Statements”.

Legal Proceedings

NPB Co. leases its facilities under an operational lease agreement
that was initially in effect until March 2022 and provided NPB Co. an option, at its sole discretion, to extend the lease for an additional
five-year period, which NPB Co. exercised, extending the lease through March 2027. In the amendment to the lease, NPB Co. (i) secured
various contractual safeguards designed to limit and mitigate any adverse impact of the landlord’s construction activities being
conducted adjacent to Fab 3 on its operations; and (ii) committed to certain obligations, including certain noise abatement actions, in
relation to the facility. The landlord has made claims that NPB Co.’s noise abatement efforts are not adequate under the terms
of the amended lease and has requested a judicial declaration that NPB Co. has committed a material non-curable breach of the lease and
that, in accordance with the lease, the landlord would be entitled to terminate the lease. NPB Co. does not agree and is disputing these
claims. See “ Item 3. Key Information - D. Risk Factors - Risks Affecting Our Business - Risks
relating to the Fab 3 lease could harm our business, operations and financial results.”

Dividend Policy

We currently intend to use our future cash and earnings, along
with our existing cash balance and deposits, to finance our growth and acquisition strategy, as well as capacity growth, our ongoing operations
and our other business and operational needs, including the buildout of the Agrate facility, the $350 million capital expenditure required
to support our SiPho and SiGe capability and capacity growth in Fabs 2, 7 and 9, and the planned investment of up to $300 million for
equipment to be located in Intel’s Fab 11. Therefore, we do not anticipate paying dividends in the foreseeable future. We may, however,
use our existing cash balance and/or future cash earnings to execute share repurchases. Our board of directors has sole discretion whether
to pay dividends or adopt a share repurchase program. If our board of directors decides in the future to pay dividends or adopt a share
repurchase program, the form, timing, frequency and amount will depend on several factors, including our