Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 43

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 43
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 made pursuant to long-term contracts with our customers, under which we agree
to reserve capacity for certain purchasing commitments. For the year ended December 31, 2024, 13% of our revenues were generated from
NTCJ, 27% of our revenues were derived from an additional four customers, each of which generated between 3% to 11% of our revenues, and
the remaining 60% of our revenues were derived from many other smaller customers. For the year ended December 31, 2023, 14% of our revenues
derived from NTCJ, and 30% of our revenues derived from an additional four customers, each of which generated between 3% to 9% of
our revenues, and the remaining 56% of our revenues derived from many other smaller customers. For the year ended December 31, 2022, 14%
of our revenues were generated from NTCJ, 33% of our revenues were derived from an additional five customers, each of which generated
between 4% to 9% of our revenues, and the remaining 53% of our revenues derived from many other smaller customers.

The following table sets forth the geographical distribution, by
percentage, of our net revenues for the periods indicated:

                             Year ended December 31,                    
                             Year ended December 31,                    
                                                2024                    
                                                2024                    
 ────────────────────────────────────────────────────────────────────────
  United States                                   42       46       49  
  Japan                                           16       17       16  
  Asia, excluding Japan                           33       27       26  
  Europe                                           9       10        9  
  Total                                          100      100      100  

The semiconductor industry is historically characterized as highly
cyclical, both seasonally and over the long term. The market fluctuates over time, cycling through periods of weak demand, excess capacity,
excess inventory, and price pressure, as well as periods of strong demand, full capacity utilization, and wafer shortages, which command
higher selling prices.

We price our products on a per-wafer basis, taking into account
the unique value of our technology, its ability to enable customers to differentiate their products, the complexity of the technology,
prevailing market conditions, volume forecasts, the strength and history of our relationships with the customer and our current capacity
utilization. Most customers typically place purchase orders two to six