#1Tower Semiconductor Where Analog and Value Meet TSEM Corporate Overview February 2021#2Safe Harbor This presentation contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. For example, statements regarding expected (i) customer demand, (ii) utilization and cross utilization of our Fabs, (iii) demand from our end markets, (iv) market and technology trends, and (v) results regarding revenues, cash flow, margins and net profits are all forward-looking statements. Actual results may differ materially from those projected or implied by such forward-looking statements due to various risks and uncertainties applicable to Tower Semiconductor's business as described in the reports filed by Tower Semiconductor Ltd. ("Tower") with the Securities and Exchange Commission (the "SEC") and the Israel Securities Authority ("ISA"), including the risks identified under the heading "Risk Factors" in Tower's most recent filings on Forms 20-F and 6-K. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations or financial condition of Tower Semiconductor. In addition, some of the financial information in this presentation, is non-GAAP financial measures, including, but not limited to, EBITDA, Cash, debt and Net Cash. These non-GAAP financial measures have the same definition as appear in our previously filed quarterly financial results related announcements and/ or other public filings. Tower Semiconductor is providing this information as of the date of this presentation and expressly disclaims any obligation to update any of the forward-looking statements or other information contained in this presentation as a result of new information, future events or otherwise. Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#3Annual Revenues $M - 5-year tracking & 2021 Target 509 961 1266 • First quarter mid-range guidance indicates the highest first quarter revenue in Company's history; Expects sequential quarterly revenue growth through 2021 Increasing 200mm and 300mm capacity to answer exceeding customer demand serving all our business units 102 2005 2010 2015 2020 Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public 2021 Tower Semiconductor#4Leading the Analog Ecosystem ● • Mega Trends and Technology Solutions Unique Position and Value-add Offerings Growth Drivers and Current Market Outlook Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#5Semi Market Trends Wireless Everything Green Everything Smart Everything Seamless Connectivity Energy Efficiency Interactive Smart Systems 36% of corporate revenue Mobile-up 22% 2020/19 Infrastructure - up 15% 2020/19 32% of corporate revenue PMIC-up 25% organic 2020/19 Discrete-down 12% 2020/19 Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public 18% of corporate revenue Up 7% 2020/19 Tower Semiconductor#6Analog IC: RF 2021 Focus and Future Growth Drivers Expand 200mm and 300mm business with added capacity RF SOI: strong traction on existing platforms; winning new designs on next-gen platform • Capitalize on 5G opportunity • Infrastructure: the upgrade of 5G base-stations occurring utilizing our 25Gbps SiGe • Mobile: strong content growth with 5G Continue growth in Optical data-com business SiGe: data center recovered H2'20 with continued strength - strong demand for 100Gbps, early adoption of 400Gbps and even activities at 800Gbps. SiPho: established leading edge foundry technology with initial production, poised for strong growth in the next several years. Tower Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Semiconductor#7RF: 300mm Opportunity The ability to print smaller dimensions on 300mm wafers has enabled Tower to expand its Analog IC markets to include: ■ Smaller geometry RF SOI with enhanced LNA and digital integration - — 65nm RF SOI: 4x smaller digital and improved LNA performance for 4G and 5G Now ramped to high volume ▪ 65nm SiGe for next generation optical and mmWave products . Enabling SiGe with high performance CMOS and dramatically higher digital density Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#85G Opportunity for RF Wireless Front-Ends SiGe and RF SOI 3 Mobile: Transition to 5G handsets that require 30- 50% more RF content Optical Fiber Communications HP SiGe and Si Photonics Infrastructure: Continued roll-out of 5G infrastructure and data center buildout Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#9Analog IC: Power Management 2021 Focus and Future Growth Drivers • Gain share in the large 200mm Power market • • . Developed next gen 200mm BCD platform, enabling strong area reduction targeting market share Expanded platforms into high-voltage power applications, strong design wins with our differentiated 140V and 200V offerings. Very high demand with large CapEx investment in 3 sites • 300mm business with added capacity 65nm BCD: strong orders beginning with large pipeline of new Tier 1 opportunities 300mm opportunity ■ Low-Voltage Power Management 65nm BCD (serving an $11B analog market) - Best in class performance - Platform provides up to 50% cost reduction vs. 0.18um at low voltage Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#10Power Management Opportunity 300mm 65nm BCD ~$7B 5V Automotive 20% higher efficiency at 5V than known competitors 35% higher efficiency at 24V than prior technology Market ($) 200mm 0.18um BCD Camera Tablet Power Bank ~$4B Servers 12V Industrial 200mm 140V Resurf Best in class Resurf voltage range 200mm 200V SOI ~$3B Wearable IoT Setup Box 24V Industrial PC ~$2B ~$800M 48V Automotive ~$1.3B Hard Drive Mobile ~$1.5B Vacuum Servers Medical White good Video robot 48V Camera Drones 5V 12V 24V Industrial 48V Automotive Industrial Voltage >120V Poised to gain share with new technology and best power efficiency across entire voltage range in this large and diverse market. Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#11Sensors and Displays 2021 Focus and Future Growth Drivers ● Image Sensors ● Strong share in traditional markets exhibiting growth (x-ray, high-end photography, machine vision), with best in the world figures of merit and continued road-map development. • Long-term partnerships with absolute leaders for new, hence by definition, high growth markets (under screen fingerprint and advanced time of flight for facial imaging). Non-imaging Sensors and Display Displays: dramatic change from LCD based screens with LED backlighting into micro-LED or micro-OLED displays. Differentiated MEMS microphones, gas, temperature, magnetic and non-magnetic axial motion sensors, as well as edge Al devices. Tower Semiconductor Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public#12CMOS Image Sensors Tower Traditional Market Medical and Dental X-Ray . Growing market share New 200mm and 300mm products introduction High end Photography Ого 1722 . . New Emerging High Growth Markets Under Screen Fingerprint • Customers providing to leading Chinese cellphone makers Under OLED New Cinema products Growing market share with a leading DSLR maker Time of Flight Industrial Machine Vision Next gen products based on 300mm state of the are GS pixels VR Displays • Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public · Under LCD Two market leaders for face recognition ToF based solution Market leader for VR goggles Tower Semiconductor#13Stitching on 300mm wafers for X-Ray and high-end photography sensors 1die per wafer product Radiography 2dies per wafer product Fluoroscopy (hand) Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#14Global Operations Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#15High Quality and Flexibility of Worldwide Manufacturing Capabilities Migdal Haemek, Israel Migdal Haemek, Israel Newport Beach, USA San Antonio, USA 6", 150mm Sensors, Power 1μm to 0.35μm Tonami, Japan CapEx Investment 8", 200mm Power 0.18μm CapEx Investment 8", 200mm Sensors, Power, RF SOI 0.18μm to 0.13μm Arai, Japan 8", 200mm Sensors, RF SOI 0.13μm to 0.11μm 8", 200mm SIGE, MEMS, RF SOI 0.5μm to 0.13μm Uozu, Japan CapEx Investment 12", 300mm Power, Sensors, RF SOI 65nm & 45nm CapEx Investment 8", 200mm RF SOI, Power 0.18μm $150 million investment to increase capacity and enable additional capabilities to existing tools for higher margin offerings. Potential of adding $150 million of revenue on an annual basis once fully qualified and utilized. Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#16Tower Operations - differentiation factors: Global capacity assurance Enabling 200mm multi-fab wafer production • Cross qualified platforms enabling maximized utilization and customer assurance CAPACITY IN LAYERS 15 • Cross qualification answer customers BCP needs Fab2 RFSOI RFCMOS CIS Power, CMOS Fab3 Fab5 TOPS RFSOI SiGe RFCMOS Fab6 Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Fab9 bwer Semiconductor#17Financial Performance Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#18Q4'20 Financial Results Highlights and Business Outlook ($ in million, except per share data) Q4'19 Q3'20 Q4'20 Revenues 306 310 345 11% quarter over quarter and 13% year over year growth Organic revenue growth of 20% quarter over quarter and 17% year over year Gross profit 55 53 70 Operating 19 19 33 profit Net profit 21 15 31 Significant increases in the fourth quarter of 2020 in gross profit, operating profit, EBITDA and net profit EPS-basic 0.19 0.14 0.29 EBITDA 75 79 96 Guides 15% Year Over Year Revenue Growth for the First Quarter of 2021; Expecting Quarterly Sequential Growth Throughout 2021 Tower Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Semiconductor#19Balance Sheet ($ in million) December 31, 2020 September 30, 2020 December 31, 2019 CURRENT ASSETS Short-term deposits Marketable securities Trade accounts receivable Inventories Other current assets Total Current Assets Long-term investments Cash and cash equivalents 212 208 356 310 313 216 189 184 176 162 118 126 199 205 192 31 30 22 1,103 1,058 1,088 41 41 40 Property and equipment, net 839 781 682 Intangible assets, net 18 16 17 Deferred tax asset and other assets, net 93 89 106 TOTAL ASSETS 2,094 1,985 1,933 CURRENT LIABILITIES Short-term debt 107 87 66 Trade accounts payable 97 104 119 Customer prepayment and deferred revenue 10 10 10 Other current liabilities 59 58 58 Total Current Liabilities 273 259 253 Long-term debt 284 229 246 Employee related liabilities Customer prepayment Deferred tax liabilities TOTAL LIABILITIES Shareholders' Equity 16 17 13 25 26 28 41 40 46 639 571 586 TOTAL LIABILITIES & EQUITY 1,455 2,094 1,414 1,347 1,985 1,933 Tower Semiconductor Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public#20Summary Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#21Value Vectors Being a trusted long-term partner for customers, employees and shareholders We pursue excellence in all we do from ideation through product shipment. Hence, we deliver the best experience to our customers and employees Partnership Making a positive and Impact sustainable impact on the world Excellence Embedded in everything that we do Leadership Leading the analog ecosystem with technology and manufacturing solutions in exciting and growing markets Innovation Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public An environment of innovation - moving great ideas into value Tower Semiconductor#22A Resilient Growth Company in a Challenging Environment ● Well experienced, matured and strong global company - with solid and enviable balance sheet and net cash financial position, exceptional analog technology solutions and manufacturing capabilities, high level expertise and talents. Excellence in leadership, partnership, impact & innovation • Long-term partnerships - based upon unparalleled trust, mutual roadmap • creation and shared success. Leading the analog ecosystem in exciting growth markets, providing strong competitive advantage with full circle value creation. Tower Semiconductor Confidential and Proprietary Information herein shall not be furnished to third parties or made public Tower Semiconductor#23Tower Semiconductor Where Analog and Value Meet Thank You www.towersemi.com