Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 26

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 26
---
 government coverage will be maintained or, if maintained, will be sufficient to compensate
us fully for all damages incurred.

The continuation of the war has also led to a deterioration of
certain indicators of Israel’s economic standing, for instance, a downgrade in Israel’s credit rating by rating agencies such
as by Moody’s, S& P Global, and Fitch.

The global perception of Israel and Israeli companies, influenced
by actions by international judicial bodies, may lead to increased sanctions and other negative measures against Israel and Israeli companies.
There is also a growing movement among countries, activists, and organizations to boycott Israeli goods and services or restrict doing
business with Israel and Israeli companies. These restrictions may materially limit our ability to obtain raw materials from these countries
or sell our products to companies in these countries. In addition, the political and security situation in Israel may result in parties
with whom we have agreements claiming that they are not obligated to perform their commitments under those agreements pursuant to force
majeure provisions. In addition, there may also be protests against, or sanctions imposed on, the State of Israel which may adversely
impact our business. Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its trading partners
may adversely affect our operations and make it more difficult for us to do business and raise capital and adversely affect the share
price of publicly traded companies having operations in Israel, such as us.

Finally, political conditions within Israel may affect our operations.
Since 2023, the Israeli government has been pursuing extensive changes to Israel’s judicial system, which has sparked extensive
political debate and unrest. In response to the foregoing developments, certain individuals, organizations, and institutions, both
within and outside of Israel, voiced concerns that such proposed changes, if adopted, may negatively impact the business environment in
Israel. Such proposed changes may also lead to political instability and/or civil unrest. Actual or perceived political instability in
Israel or any negative changes in the political environment, may adversely affect the Israeli economy and, in turn, our business, financial
condition and results of operations.

If the exemption allowing
us to operate our Israeli factories seven days a week or our business license is not renewed, our business may be adversely affected.

We operate our Israeli factories seven days a week pursuant to
an exemption (which we need to timely renew) from the law that requires businesses in Israel to be closed from sundown on Friday through
sundown on Saturday. In addition, our business license certificate issued by municipality