Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 63

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 63
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 as described in Note 1 to our financial statements for the year ended December 31, 2024. There was no merger-contract
termination fee, net, for the year ended December 31, 2024

Operating profit for the year ended December 31, 2024 amounted
to $191.3 million as compared to $547.3 million for the year ended December 31, 2023. The $356.0 million decrease in operating profit
resulted mainly from the $313.5 million merger-contract termination fee, net, and the $52.2 million restructuring gain from the sale of
machinery and equipment, net, recorded during the year ended December 31, 2023, as well as the $14.1 million decrease in gross profit
for the year ended December 31, 2024, partially offset by the $26.0 million increase in restructuring income, net, as described above.

41

Financing income, net, for the year ended December 31, 2024 amounted
to $50.8 million as compared to $30.5 million for the year ended December 31, 2023. The $20.3 million increase in financing income, net,
is primarily due to higher interest income on increased bank deposits.

Other expense, net, for the year ended December 31, 2024, amounted
to $24.7 million as compared to other income, net, of $7.0 million for the year ended December 31, 2023. Other income (expense), net,
primarily includes non-recurring, non-operational items, such as gains from the sale of investments in privately held companies and gains
(losses) from the sale of unused machinery and equipment.

Income tax expense, net, for the year ended December 31, 2024 amounted
to $10.2 million as compared to $65.3 million for the year ended December 31, 2023. The $55.1 million decrease in income tax expense,
net, is primarily due to a $367.4 million decrease in profit before income tax for the year ended December 31, 2024 as compared to the
year ended December 31, 2023, which mainly resulted from the $313.5 million merger-contract termination fee, net included in operating
profit for the year ended December 31, 2023, as described above.

Net profit for the year ended December