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

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 20
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 introduced
that focus on restricting or managing emissions of carbon dioxide, methane, tetrafluoromethane (CF4), hexafluoroethane (C2F6), octafluororopane
(C3F8), octafluorobutane (c-C4F8), suflur hexafluoride (SF6), nitrogen trifluoride (NF3), trifluoromethane (CHF3) and other greenhouse
gases. Enterprises may need to purchase new equipment at higher costs or raw materials with lower carbon footprints. In addition, there
are restrictions and limited quota imposed by the Israeli government that restricts the import of certain of such materials and we may
be unable to obtain all material required for our operations. These developments and further legislation that is likely to be enacted,
such as changes in environmental regulations on the use of per fluorinated compounds, may increase our operational costs, which may adversely
affect our results of operation and financial condition.

Compliance with U. S. rules and regulations concerning conflict minerals
may affect our ability or the ability of our suppliers to purchase raw materials at an effective cost and may adversely affect our business.

Our industry relies on raw materials that consist of, contain or
incorporate certain minerals sourced from the Democratic Republic of Congo (“ DRC”) or adjoining countries that are subject
to regulation. These minerals are commonly referred to as conflict minerals. Conflict minerals that may be used by our suppliers include
Columbite-tantalite (derivative of tantalum [Ta]), Cassiterite (derivative of tin [Sn]), gold [Au], Wolframite (derivative of tungsten
[W]), and Cobalt [Co]. We are currently subject to the requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act
of 2010 that require due diligence and disclosure as to whether our products contain conflict minerals. Any changes concerning the
use of conflict minerals could adversely affect the sourcing, availability and pricing of the materials used in the manufacturing process
of our products. In addition, we will likely incur additional costs to comply with any new conflict minerals rules, including costs related
to potential additional disclosure requirements and conducting additional diligence procedures to provide additional information with
respect to the sources of conflict minerals that may be used in, or necessary to the production of, our products and, if applicable,
potentially making changes to our products, processes or sources of supply as a consequence of such verification activities