Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 170

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 170
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 even a 300mm wafer. We also target the rapidly growing non-visual sensor markets by developing specialized
sensors, in particular advanced integrated UV, gas and BioFET sensors. In addition, we target the display markets utilizing micro OLED
on silicon, using our well established processes to create displays for the AR/VR growing market.

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We are also engaged in development of intellectual property for
enabling data processing using artificial intelligence based on our original device approaches by using our patented memristor solutions
for emulating synapses in artificial neural networks. Our specialty products and target market strategy allow us to grow and diversify
our business by attracting new customers, which expands our customer base, and broadening our business with existing customers.

During recent years, we have accelerated our plans to expand our
capacity, including through our recent agreement with Intel under which Tower will have access to a 300mm capacity corridor in Intel’s
facility in New Mexico, U. S. We are focused on successfully integrating all of our fabs globally and increasing the utilization of our
fabs, by attracting new customers and opportunities.

We seek to maintain capital efficiency by leveraging our operational
model and ensuring cost-effectiveness. With a global capacity footprint, including seven fabs in three continents, we are
focused on sharing and applying best practices across the organization, to provide our customers with high quality solutions, along with
the applications knowledge and technical support that allow them to benefit from a competitive edge in the market. Our geographical diversity
allows us to perform an internal benchmark across global facilities to gain knowledge on work processes and methodologies, thereby ensuring
that we maintain a high level of operations across all facilities at which we manufacture. Our global foothold also provides our customers
with flexibility and business continuity in terms of maximum opportunity for capacity availability.

Over the last several years, we have been constantly looking to
expand our presence in the global markets, penetrate new geographical areas, increase our served markets and expand our technology offering
through business and development ventures.

This may also be accomplished through (i) establishment of new
facilities with third party collaboration and/or funding, (ii) mergers and acquisitions with potential target facilities that may include
a solid base of customer demand to fill the increase in capacity, and/or (iii) development of technologies that may expand our servable
and/or available market potential, and increase our revenue, customer base and margins. Such transactions are also beneficial as they
provide our customers with capacity diversification and opportunity for additional growth