Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 171

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 171
---
 through access to increased capacity. We continuously
evaluate potential acquisition opportunities and seek to secure additional capacity. Our current cash balance and deposits may be used
to enable us to realize and execute on such opportunities, and we may require additional financing through, among others, debt (including
convertible debt, bonds, notes or debentures) and/or equity issuances (including shares and warrants), in order to consummate such opportunities
and/or fund our other operational and capital expenditure cash needs, as well as our strategy to expand our global footprint, capacity
and capabilities. During 2024, we continued to increase our investments in property and equipment to expand the capacities and capabilities
of our existing fabs, our shared fab in Italy, and our capacity corridor in the New Mexico fab and also initiated an investment plan of
$350 million to create and/or increase capacity and capabilities for SiGe and SiPho in Fabs 2, 7 and 9.

E. CRITICAL ACCOUNTING ESTIMATES

Our financial statements are prepared in accordance with U. S. GAAP.
The preparation of these financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts
of assets, liabilities, revenue and expenses, as well as related disclosures. We evaluate our estimates, assumptions and judgments on
an ongoing basis. Our estimates, assumptions and judgments are based on historical experience and various other factors that we believe
to be reasonable under the circumstances. Different assumptions and judgments would change the estimates used in the preparation of our
financial statements, which, in turn, could change the results from those reported.

The critical accounting policies used in the preparation of our
consolidated financial statements that we believe were most affected by significant management estimates and judgments are discussed below.
See Note 2 to the consolidated financial statements included elsewhere in this annual report for further information on all significant
accounting policies that we used to prepare our consolidated financial statements.

46

Income Taxes

Our provision for income taxes is affected by income tax in a multinational
tax environment. The income tax provision is an estimate determined based on current enacted tax laws and tax rates at each of our geographic
locations with the use of acceptable allocation methodologies based upon our organizational structure, our operations and business mode
of work, resulting in applicable taxable income attributable to each of the locations we operate in.

For the year ended December 31, 2024, the consolidated provision
for income taxes was $10.2 million, as detailed in Note 18 to our financial