Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 45

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 45
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ries, generally target either industry-standard 8-inch CMOS processing or specialty process technologies. Most competitors,
particularly those based in the Asia-Pacific region, benefit from their proximity to key markets and, in some cases, from local government
incentives and the integrated design and manufacturing ecosystems prevalent in these areas. However, global efforts to diversify semiconductor
manufacturing bases are beginning to challenge this dynamic, signaling a shift towards a more geographically dispersed competitive landscape.

Geopolitical factors and trade policies can significantly impact
the semiconductor industry. Restrictions, trade tensions, and policies promoting domestic employment and wafer manufacturing can influence
foundries’ financials, business operations, and competitive positioning.

The principal elements of competition in the wafer foundry market
are:

  technology offering and future roadmap based on research and development capabilities and access to intellectual property;  

  devices performance;  

  product development kits (PDKs) with accurate modeling.  

  system level technical expertise;  

  customer technical support;  

  design services;  

  operational performance;  

  quality systems;  

  wafer quality;  

  operational yields;  

  pricing;  

  strategic customer relationships;  

  capacity availability; and  

  stability and reliability of supply.  

30

Some of our competitors, particularly the advanced pure-play technology
node-driven foundry service providers, have greater capacity, may have greater scope and/or greater research and development resources,
a better cost structure, and greater financial, marketing and other resources. As a result, these companies may be able to compete more
aggressively and over a longer period than us.

We aim to compete primarily on the basis of advanced specialty
analog/mixed-signal technology, research and development, breadth of process offerings, production quality, technical support, and our
design and engineering services. Our highly differentiated specialty offering and proven track record in analog/mixed-signal markets enable
us to effectively compete with larger foundry service providers.

Some semiconductor companies have advanced their CMOS designs,
including mixed-signal to 28 nanometers and below. These smaller geometries may offer customers performance and integration features that
are comparable to or exceed those offered by our specialty process technologies and may be more cost-effective at higher production volumes
for certain applications, such as when a large amount of digital content is required in a mixed-signal semiconductor and less analog content
is required. Our specialty process technologies will therefore compete with these advanced CMOS processes, and some of our potential and
existing customers could