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--12-31
6-K
000-24790
TOWER SEMICONDUCTOR LTD.
Ramat Gavriel Industrial Park
P.O. Box 619
Migdal Haemek
IL
2310502
231188000
235369000
1250225000
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<div>
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="font-weight:bold">NOTE 1</span> <span style="font-weight:bold"><span style="font-weight:bold">-</span> GENERAL</span></span></span></div>
<div>
<div style="line-height:1.25"> </div>
<div style="text-align:justify;text-indent:-31.5pt;margin-right:18pt;margin-left:94.5pt;line-height:1.25;font-family:'Times New Roman',Times,serif;font-weight:bold"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Basis for Presentation</span></span></div>
<div style="line-height:1.25"> </div>
<div style="text-align:justify;margin-left:63pt;line-height:1.25;font-family:'Times New Roman',Times,serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">The unaudited condensed interim consolidated financial statements of Tower Semiconductor Ltd. (“Tower” or the “Company”) as of June 30, 2026 and for the three and six months ended June 30, 2026 and June 30, 2025 include the financial statements of Tower and (i) its wholly-owned subsidiary Tower US Holdings Inc., the sole owner of: (1) Tower Semiconductor NPB Holdings, Inc., Tower Semiconductor Newport Beach, Inc., an independent semiconductor foundry, and its wholly-owned subsidiary Newport Fab LLC (Tower Semiconductor NPB Holdings, Inc., Tower Semiconductor Newport Beach, Inc. and Newport Fab LLC, collectively referred to herein as “TSNB”);<span> </span>and (2) Tower Semiconductor San Antonio, Inc. (“TSSA”); (ii) its 51% owned subsidiary, Tower Partners Semiconductor Co., Ltd. (“TPSCo”), an independent semiconductor foundry which operates two semiconductor facilities located in Tonami and Uozu in Hokuriku Japan), with the other 49% of TPSCo’s shares held by Nuvoton Technology Corporation Japan (“NTCJ”); and (iii) its wholly-owned subsidiary, Tower Semiconductor Italy S.r.l. (“TSIT”), incorporated in 2021 following the collaborative arrangement signed in 2021 with ST Microelectronics S.r.l (“ST”) with regards to ST’s 300 mm facility in Agrate, Italy.</span></span></div>
<div style="line-height:1.25"> </div>
<div style="text-align:justify;margin-left:63pt;line-height:1.25;font-family:'Times New Roman',Times,serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">The Company’s unaudited condensed interim consolidated financial statements are presented after elimination of inter-company transactions and balances and are presented in accordance with U.S. generally accepted accounting principles (“US GAAP”).</span></span></div>
<div style="line-height:1.25"> </div>
<div style="text-align:justify;margin-left:63pt;line-height:1.25;font-family:'Times New Roman',Times,serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">The unaudited condensed interim consolidated financial statements of the Company should be read in conjunction with the audited consolidated financial statements of the Company as of December 31, 2025 and for the year then ended, including the notes thereto.</span></span></div>
<div style="text-align:justify;margin-left:72pt;line-height:1.25"> </div>
<div style="text-align:justify;margin-left:63pt;line-height:1.25;font-family:'Times New Roman',Times,serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">In the opinion of the Company's management, the unaudited condensed interim consolidated financial statements include all adjustments necessary for a fair presentation of the Company’s financial position as of the dates presented and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected on a full-year basis.</span></span></div>
</div>
</div>
0.51
0.49
<div>
<div style="line-height:1.25">
<div style="line-height:1.25">
<div style="line-height:1.25">
<div style="line-height:1.25">
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="font-weight:bold">NOTE 2</span> <span style="font-weight:bold"><span style="font-weight:bold">-</span> INVENTORY</span></span></span></div>
</div>
</div>
</div>
</div>
<div>
<div style="line-height:1.25"> </div>
<div style="text-align:justify;margin-left:63pt;line-height:1.25;font-family:'Times New Roman',Times,serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Inventories consist of the following as of June 30, 2026 and December 31, 2025:</span></span></div>
<div style="text-align:justify;line-height:1.25;font-family:Times New Roman, Times, serif;margin-top:0pt;margin-bottom:0pt"> </div>
<div>
<div style="margin-left:63pt">
<table border="0" cellpadding="0" cellspacing="0" style="width:90%;color:#000000;font-family:'Times New Roman', Times, serif;font-size:10pt;text-align:left">
<tr>
<td style="vertical-align:middle;padding-bottom:2px;vertical-align:bottom">
<div style="text-align:justify;line-height:1.25;font-weight:bold"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Details</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;padding-bottom:2px;vertical-align:bottom"> </td>
<td colspan="2" style="border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom;margin-top:0pt;margin-bottom:0pt">
<div style="text-align:center;line-height:1.25;font-weight:bold;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="margin-top:0pt;margin-bottom:0pt"><span style="margin-top:0pt;margin-bottom:0pt">June 30,</span></span></span></span></div>
<div style="text-align:center;line-height:1.25;font-weight:bold;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="margin-top:0pt;margin-bottom:0pt"><span style="margin-top:0pt;margin-bottom:0pt">2026</span></span></span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;padding-bottom:2px;vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;padding-bottom:2px;vertical-align:bottom"> </td>
<td colspan="2" style="border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom;margin-top:0pt;margin-bottom:0pt">
<div style="text-align:center;line-height:1.25;font-weight:bold;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="margin-top:0pt;margin-bottom:0pt"><span style="margin-top:0pt;margin-bottom:0pt">December 31, </span></span></span></span></div>
<div style="text-align:center;line-height:1.25;font-weight:bold;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="margin-top:0pt;margin-bottom:0pt"><span style="margin-top:0pt;margin-bottom:0pt">2025</span></span></span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;padding-bottom:2px;vertical-align:bottom;white-space:nowrap"> </td>
</tr>
<tr>
<td style="vertical-align:top;width:76%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="text-align:justify;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Raw materials</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">$</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="line-height:1.25">76,443</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">$</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="line-height:1.25">105,301</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom;white-space:nowrap"> </td>
</tr>
<tr>
<td style="vertical-align:top;width:76%;vertical-align:bottom">
<div style="text-align:justify;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Work in process</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;vertical-align:bottom">
<div style="line-height:1.25">154,876</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;vertical-align:bottom">
<div style="line-height:1.25">144,373</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom;white-space:nowrap"> </td>
</tr>
<tr>
<td style="vertical-align:middle;width:76%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom">
<div style="text-align:justify;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Finished goods</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;background-color:rgb(204, 238, 255);border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25">13,037</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;background-color:rgb(204, 238, 255);border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25">7,181</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom;white-space:nowrap"> </td>
</tr>
<tr>
<td style="vertical-align:middle;width:76%;padding-bottom:4px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;padding-bottom:4px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;border-bottom:4px double rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">$</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;border-bottom:4px double rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25">244,356</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;padding-bottom:4px;vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;padding-bottom:4px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;border-bottom:4px double rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">$</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;border-bottom:4px double rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25">256,855</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;padding-bottom:4px;vertical-align:bottom;white-space:nowrap"> </td>
</tr>
</table>
</div>
</div>
</div>
</div>
<div>
<div style="margin-left:63pt">
<table border="0" cellpadding="0" cellspacing="0" style="width:90%;color:#000000;font-family:'Times New Roman', Times, serif;font-size:10pt;text-align:left">
<tr>
<td style="vertical-align:middle;padding-bottom:2px;vertical-align:bottom">
<div style="text-align:justify;line-height:1.25;font-weight:bold"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Details</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;padding-bottom:2px;vertical-align:bottom"> </td>
<td colspan="2" style="border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom;margin-top:0pt;margin-bottom:0pt">
<div style="text-align:center;line-height:1.25;font-weight:bold;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="margin-top:0pt;margin-bottom:0pt"><span style="margin-top:0pt;margin-bottom:0pt">June 30,</span></span></span></span></div>
<div style="text-align:center;line-height:1.25;font-weight:bold;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="margin-top:0pt;margin-bottom:0pt"><span style="margin-top:0pt;margin-bottom:0pt">2026</span></span></span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;padding-bottom:2px;vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;padding-bottom:2px;vertical-align:bottom"> </td>
<td colspan="2" style="border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom;margin-top:0pt;margin-bottom:0pt">
<div style="text-align:center;line-height:1.25;font-weight:bold;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="margin-top:0pt;margin-bottom:0pt"><span style="margin-top:0pt;margin-bottom:0pt">December 31, </span></span></span></span></div>
<div style="text-align:center;line-height:1.25;font-weight:bold;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="margin-top:0pt;margin-bottom:0pt"><span style="margin-top:0pt;margin-bottom:0pt">2025</span></span></span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;padding-bottom:2px;vertical-align:bottom;white-space:nowrap"> </td>
</tr>
<tr>
<td style="vertical-align:top;width:76%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="text-align:justify;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Raw materials</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">$</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="line-height:1.25">76,443</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">$</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;background-color:rgb(204, 238, 255);vertical-align:bottom">
<div style="line-height:1.25">105,301</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);vertical-align:bottom;white-space:nowrap"> </td>
</tr>
<tr>
<td style="vertical-align:top;width:76%;vertical-align:bottom">
<div style="text-align:justify;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Work in process</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;vertical-align:bottom">
<div style="line-height:1.25">154,876</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;vertical-align:bottom">
<div style="line-height:1.25">144,373</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;vertical-align:bottom;white-space:nowrap"> </td>
</tr>
<tr>
<td style="vertical-align:middle;width:76%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom">
<div style="text-align:justify;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">Finished goods</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;background-color:rgb(204, 238, 255);border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25">13,037</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;background-color:rgb(204, 238, 255);border-bottom:2px solid rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25">7,181</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;background-color:rgb(204, 238, 255);padding-bottom:2px;vertical-align:bottom;white-space:nowrap"> </td>
</tr>
<tr>
<td style="vertical-align:middle;width:76%;padding-bottom:4px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;padding-bottom:4px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;border-bottom:4px double rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">$</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;border-bottom:4px double rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25">244,356</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;padding-bottom:4px;vertical-align:bottom;white-space:nowrap"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;padding-bottom:4px;vertical-align:bottom"> </td>
<td colspan="1" style="vertical-align:bottom;width:1%;border-bottom:4px double rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">$</span></span></div>
</td>
<td colspan="1" style="vertical-align:bottom;text-align:right;width:9%;border-bottom:4px double rgb(0, 0, 0);vertical-align:bottom">
<div style="line-height:1.25">256,855</div>
</td>
<td colspan="1" style="vertical-align:bottom;width:1%;padding-bottom:4px;vertical-align:bottom;white-space:nowrap"> </td>
</tr>
</table>
</div>
</div>
76443000
105301000
154876000
144373000
13037000
7181000
244356000
256855000
<div>
<div style="text-align:justify;line-height:1.25"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="font-weight:bold">NOTE 3</span> <span style="font-weight:bold"><span style="font-weight:bold">-</span> RECENT DEVELOPMENTS</span></span></span></div>
<div style="line-height:1.25"> </div>
<div style="text-align:justify;margin-left:63pt;line-height:1.25;font-family:'Times New Roman',Times,serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">On March 25, 2026, the Company and NTCJ entered into a framework agreement to implement a strategic restructuring of TPSCo’s business operations, under which Tower will acquire full ownership and operational control of the Uozu fab while the Tonami fab will remain within TPSCo, which will become a wholly owned subsidiary of NTCJ, for consideration of a $25,000 payment by NTCJ to Tower to be made on the closing date. The transaction is expected to close on April 1, 2027, subject to the satisfaction of customary closing conditions and receipt of applicable regulatory approvals. Under the new structure, Tower’s new wholly owned subsidiary in Japan (“TSJPN”) will own all Fab 7 (300mm) manufacturing production tools, and manage all Fab 7 operations, employees and business activities.</span></span></div>
<div style="line-height:1.25"> </div>
<div style="text-align:justify;margin-left:63pt;line-height:1.25;font-family:'Times New Roman',Times,serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">In March 2026, GlobalFoundries Inc. filed three lawsuits against the Company in the U.S. International Trade Commission (ITC) and the United States District Court for the Western District of Texas alleging infringement of certain of its patents. Thereafter, an additional lawsuit has been filed by GlobalFoundries in China with respect to alleged infringement of a Chinese patent which is a counterpart of one of the patents in the ITC case. The Company disputes these claims.</span></span></div>
<div style="line-height:1.25"> </div>
<div style="text-align:justify;margin-left:63pt;line-height:1.25;font-family:'Times New Roman',Times,serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif">In July 2026, the Company announced its intention to expand its 300mm Silicon Photonics (SiPho) and Silicon Germanium (SiGe) capacity and capabilities in Japan with the support of the Government of Japan through cash grants that are expected to be received from its Ministry of Economy, Trade and Industry (METI). The plan consists of repurposing the Arai facility, formerly Fab 6 (a 200mm fab that ceased its operations in 2022), for 300mm Silicon Photonics manufacturing, maximizing the existing Fab 7 300mm output in Uozu, and a planned additional 300mm manufacturing facility that may be built adjacent to Fab 7, following signing and closing of related agreements with contractors and other service and equipment providers, obtaining necessary permits, finalizing METI grants terms and covenants thereto and other consents that may be required.</span></span></div>
</div>
25000
Includes an increase of $282,582 in customers' advances, net.