Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 22

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 22
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forms of energy, which are continuing to evolve, may result in increased costs (including but not limited to increased costs related to
compliance, stakeholder engagement, contracting and insurance), changes in demand for certain products, enhanced compliance or disclosure
obligations, or other adverse impact to our business, financial condition or results of operations.

While we engage in voluntary initiatives (such as disclosures,
certifications, and improvement goals, among others) to increase our company’s contribution to society and our environment, such
initiatives may be costly and may not generate the desired impact. Actions that we may take or statements that we may make based on expectations,
assumptions, or third-party information that we currently believe to be reasonable may subsequently be determined to be erroneous or subject
to other interpretations. Our current actions may subsequently be determined to be insufficient by various stakeholders, and we may be
requested to adjust or improve certain ESG initiatives and/or disclosures.

Certain market participants, including major institutional investors
and capital providers, have used third-party benchmarks and scores to assess companies’ ESG profiles in making investment or voting
decisions. Unfavorable ESG ratings could lead to negative investor sentiment towards us or our industry, which could negatively impact
our share price as well as our access to and cost of capital. ESG-related regulation may also result in increased compliance costs or
scrutiny. There can be no certainty that we will successfully navigate or manage ESG issues or that we will successfully meet investors
or others’ expectations. Any failure, or perceived failure, by us in this regard could have a material adverse effect on our reputation
with customers, employees, other third parties and the communities and industries in which we operate, as well as on our business, share
price, financial condition, access to capital or results of operations.

15

RISKS RELATED TO OUR SECURITIES

Fluctuations in the market price of our traded
securities may significantly affect our ability to raise new capital.

The capital markets, in general, have experienced volatility that
often has been unrelated to the operating performance of the traded companies. The share price of many companies in the semiconductor
industry has experienced wide fluctuations, which has often been unrelated to the operating performance of such companies. These broad
market and industry fluctuations may adversely affect the market price of our securities, regardless of our actual operating performance.

In addition, it is possible that our operating results may differ
from the expectations of public market analysts and investors, which