Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 1

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 1
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 part, on finding suitable partners and targets for
acquisitions of existing or new fabs and/or capacity through capacity arrangements with companies that already own fabs, successfully
negotiating with the seller and/or partner a reasonable price for the acquisition or engagement, securing financing and completing the
expansion plans, obtaining approvals for grants and subsidies, integrating the acquired facilities into our business efficiently and effectively
achieving desired synergies and anticipated benefits, and loading the facilities with customer engagements sufficient to cover their operating
and other costs. The activities related to production at Fab 10 and Fab 11 under the capacity corridor transaction with Intel involve
potential liabilities and numerous complex steps, including qualification and duration thereof, developing advanced technologies, procuring
equipment necessary for production, process qualification, and facility operational ramp-up. We cannot assure you that we will be
successful in executing this business strategy or that we will succeed in increasing our market presence and attracting new customers
and business and/or expanding our business with our current customers, in order to operate any such additional capacity profitably.

1

This strategy involves many risks, each of which may negatively
affect our profitability and financial position, including, but not limited to, the following:

  Other foundries may bid against us to acquire potential targets. This competition may result in decreased availability of, or increased  
  prices for, suitable acquisition candidates;                                                                                             
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  We may not be able to obtain the necessary regulatory or other approvals, and as a result, or for other reasons, we may fail to consummate  
  certain acquisitions;                                                                                                                       
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  Potential acquisitions and execution of an expansion plan may require the dedication of substantial management effort, time and resources  
  which may divert management from our existing business operations or other strategic opportunities;                                        
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  We may not be able to retain experienced management and skilled employees from the businesses we acquire and, if we cannot retain  
  such personnel, we may not be able to attract new skilled employees and experienced management to replace them;                    
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  We may purchase a company with excessive unknown contingent liabilities and/or a cost structure that is not as beneficial as anticipated