Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 21

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 21
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. It is also
possible that we may face reputational harm and/or may lose customers if we determine that certain of our products, processes or sources
of supply use certain materials from countries directly or indirectly financing or benefitting armed groups, that would require us to
ensure that such source responsibly sources minerals in conformance with applicable standards or change the source of supply, which may
adversely impact our revenue and business.

14

Security, cyber and privacy breaches may harm our business and operations.

Any security breach, including those resulting from a cybersecurity
attack or any unauthorized access, unauthorized usage, virus or similar breach or disruption could result in the loss of confidential
information, damage to our fab operations, damage to our reputation, early termination of our contracts, litigation, regulatory investigations
or other liabilities. If our security measures are breached as a result of third‑party action, employee error, malfeasance or otherwise
and, as a result, someone obtains unauthorized access to our, our customers’, our employees’ or any other third party’s
confidential information, our reputation may be damaged, we may face potential disruption and loss, especially due to the possible substantial
damage if operations cannot be quickly restored, our business may suffer, and we could incur significant liability.

The risk of a security breach or disruption, particularly through
cyber-attacks or cyber-intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as
the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Techniques used to
obtain unauthorized access or to sabotage systems change frequently and generally are not recognized until launched against a target.
As a result, we may be unable to anticipate these techniques or to implement adequate preventative measures. Although we have invested
in measures to reduce these risks, we cannot assure you that these measures will be successful in preventing compromise and/or disruption
of our information technology systems and related data. If an actual or perceived material security breach occurs, the market’s
perception of our security measures may be harmed and we could lose sales and customers as well as incur operational damage to our equipment
and/or products.

Environmental, social, and governance (“ ESG”)
initiatives could increase our costs or negatively impact our reputation, which may adversely impact our public image, operations, business
and/or financial condition.

There has been varying focus across industries on companies’
ESG and sustainability practices. Expectations regarding voluntary ESG initiatives and disclosures and consumer demand for