Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 165

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 165
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 2024, the USD depreciated against the Euro by 5.9%. This exposure is partially mitigated and maintained within a pre-defined fixed
range through foreign currency cylinder and forward transactions which we are engaging in.

B. LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2024, we had an aggregate of $271.9 million
in cash and cash equivalents, as compared to $260.7 million as of December 31, 2023. The main cash items during the year ended December
31, 2024 were as follows: $448.7 million, net, cash provided by operating activities; $431.7 million invested in property and equipment,
net; $31.9 million proceeds from sales of short-term deposits and marketable securities, net; and $32.5 million debt repaid, net.

Short-term and long-term debt as presented in the balance sheet
as of December 31, 2024 amounted to $48.4 million and $132.4 million, respectively, and includes loans, operating leases and capital leases.

Based on our current operations and expected short term growth,
our cash generated from operations, our current and expected available lease lines with third-party leasing companies and our existing
balance of cash and deposits, we have sufficient resources to meet our cash needs for operating activities and capital expenditures for
our existing fabs, equipping the facility in Agrate, Italy and the capacity corridor at Intel’s New Mexico fab, as well as the repayment
of our debt in the short term and long term.

If we execute an acquisition transaction(s), or a joint partnership
or another large transaction to expand our capacity, including for the funding of equipment for further expansion of the facility established
by ST in Agrate, Italy, acquiring leased assets and/or acquiring and/or establishing additional fabs and/or capacity through other capacity
acquisition related transactions, we may utilize our current cash balance and deposits and/or may be required to secure additional financing,
including by way of public or private offerings of equity and/or debt and/or re-financing or other financing alternatives. The timing,
terms, size and pricing of any future fundraising, if any, would be subject to the then-prevailing capital market conditions and our business
and financial situation, as well as the need to obtain certain regulatory and other consents. There is no assurance that we would be able
to obtain the necessary consents and/or funding in a timely manner, in sufficient amount or on favorable terms