Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 158

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 158
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 an additional four customers, each comprising between 3% to 9% of our revenues, and the remaining 56% derived from many other smaller
customers for the year ended December 31, 2023.

In order to attract and retain our customers, in 2024 and 2023,
we made gross investments of $436 million and $445 million respectively, in property and equipment across our fabs in Israel, Italy, the
United States and Japan.

38

KEY FACTORS AFFECTING
OUR RESULTS

The following are key factors that impact our results of operations:

Ability to attract and retain customers.

We are a trusted, customer-oriented service provider that has built
a solid reputation in the foundry industry for over thirty years. We have built strong relationships with customers. Our consistent focus
on providing high-quality, value-added services, including engineering and design support, has allowed us to attract customers that seek
to work with a proven provider of foundry solutions. Our emphasis on close collaboration with customers and accelerating time-to-market
and performance of their next-generation products has enabled us to maintain a high customer retention rate, while increasing the number
of new customers and products.

We continuously aim to expand our capacity footprint and business
by addressing the future needs of our existing customers and attracting new customers that will utilize our existing facilities, some
of which have recently undergone further capacity expansion projects. Additionally, we seek to acquire external capacity through acquisitions
of existing fabs or establishing new fabs, as we have done in the past, independently or through third-party collaborations, utilizing
existing resources or additional funding (which may include cash, equity or in-kind investment). We also offer a wide range of support
services for the establishment of new facilities or the ramp-up of existing facilities owned by third parties, using our technological,
operational and integration expertise, for which we receive payments based on the achievement of pre-defined milestones and may also be
entitled to certain capacity allocation and other rights.

Design wins with new and existing customers.

We work with our customers and potential customers to understand
their product roadmaps and strategies. We consider design wins to be critical to our future success. We define a design win as the successful
completion of the evaluation stage, where a customer has verified that our platform process meets its requirements and qualified our libraries
and IPs for their products. The revenue generated from each design win can vary significantly. Our long-term sales expectations are based
on forecasts from customers, internal estimates of customer demand, factoring in