Exhibit 99.1

TOWER SEMICONDUCTOR LTD.

AND SUBSIDIARIES

UNAUDITED CONDENSED INTERIM

CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

INDEX TO UNAUDITED CONDENSED INTERIM

CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021

	Page
BALANCE SHEETS	F-2
STATEMENTS OF OPERATIONS	F-3
STATEMENTS OF COMPREHENSIVE INCOME	F-4
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY	F-5
STATEMENTS OF CASH FLOWS	F-6 - F-7
NOTES TO FINANCIAL STATEMENTS	F-8

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars and shares in thousands)

		As of				As of
		June 30,				December 31,
		2021				2020
A S S E T S
CURRENT ASSETS
Cash and cash equivalents		$	215,755			$	211,683
Short-term interest-bearing deposits			323,713				310,230
Marketable securities			189,489				188,967
Trade accounts receivables			144,868				162,100
Inventories			209,306				199,126
Other current assets			39,929				30,810
Total current assets			1,123,060				1,102,916
LONG-TERM INVESTMENTS			41,453				40,699
PROPERTY AND EQUIPMENT, NET			859,589				839,171
GOODWILL AND OTHER INTANGIBLE ASSETS, NET			16,978				17,962
DEFERRED TAX AND OTHER LONG-TERM ASSETS			91,312				93,401
TOTAL ASSETS		$	2,132,392			$	2,094,149
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt		$	104,062			$	106,513
Trade accounts payables			100,426				96,940
Deferred revenue and customers' advances			19,608				10,027
Employee related liabilities			63,650				51,527
Other current liabilities			14,761				7,905
Total current liabilities			302,507				272,912
LONG-TERM DEBT			234,500				283,765
LONG-TERM CUSTOMERS' ADVANCES			32,047				25,451
EMPLOYEE RELATED LIABILITIES			15,958				15,833
DEFERRED TAX AND OTHER LONG-TERM LIABILITIES			29,771				41,286
TOTAL LIABILITIES			614,783				639,247
THE COMPANY'S SHAREHOLDERS' EQUITY			1,522,540				1,457,812
Non-controlling interest			(4,931	)			(2,910	)
TOTAL SHAREHOLDERS' EQUITY			1,517,609				1,454,902
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	2,132,392			$	2,094,149

(*) Marketable securities are available-for-sale securities; the amortized cost of such marketable securities of $188,361 and $187,719 as of June 30, 2021 and December 31, 2020, respectively, is presented net of an immaterial allowance for credit losses.

See notes to consolidated financial statements.

F - 2

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(dollars and shares in thousands, except per share data)

		Six months ended								Three months ended
		June 30,								June 30,
		2021				2020				2021				2020
REVENUES		$	709,352			$	610,261			$	362,138			$	310,090
COST OF REVENUES			565,783				500,013				288,383				252,385
GROSS PROFIT			143,569				110,248				73,755				57,705
OPERATING COSTS AND EXPENSES:
Research and development			41,424				38,838				21,081				19,424
Marketing, general and administrative			35,662				32,845				18,671				16,154
			77,086				71,683				39,752				35,578
OPERATING PROFIT			66,483				38,565				34,003				22,127
FINANCING AND OTHER INCOME (EXPENSE), NET			(8,326	)			(282	)			( 484	)			1,831
PROFIT BEFORE INCOME TAX			58,157				38,283				33,519				23,958
INCOME TAX BENEFIT (EXPENSE), NET			3,674				(778	)			(2,202	)			(2,484	)
NET PROFIT			61,831				37,505				31,317				21,474
Net income attributable to non-controlling interest			(2,643	)			(1,433	)			(451	)			(2,422	)
NET PROFIT ATTRIBUTABLE TO THE COMPANY		$	59,188			$	36,072			$	30,866			$	19,052
BASIC EARNINGS PER ORDINARY SHARE:
Earnings per share		$	0.55			$	0.34			$	0.29			$	0.18
Weighted average number of ordinary shares outstanding			107,992				106,885				108,043				106,956
DILUTED EARNINGS PER ORDINARY SHARE:
Earnings per share		$	0.54			$	0.33			$	0.28			$	0.18
Net profit used for diluted earnings per share		$	59,188			$	36,072			$	30,866			$	19,052
Weighted average number of ordinary shares outstanding used for diluted earnings per share			109,545				108,213				109,629				108,277

See notes to consolidated financial statements.

F - 3

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(dollars in thousands)

		Six months ended								Three months ended
		June 30,								June 30,
		2021				2020				2021				2020
Net profit		$	61,831			$	37,505			$	31,317			$	21,474
Other comprehensive income, net of tax:
Foreign currency translation adjustment			(9,741	)			(124	)			1,209				556
Change in employees plan assets and benefit obligations, net of taxes			(100	)			(130	)			(50	)			(65	)
Unrealized gain (loss) on derivatives			(523	)			(1,473	)			1,134				4,662
Comprehensive income			51,467				35,778				33,610				26,627
Comprehensive loss (income) attributable to non-controlling interest			2,021				(1,959	)			(552	)			(3,091	)
Comprehensive income attributable to the Company		$	53,488			$	33,819			$	33,058			$	23,536

See notes to consolidated financial statements.

F - 4

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)

(dollars and share data in thousands)

		THE COMPANY'S SHAREHOLDERS' EQUITY
		Ordinary shares issued				Ordinary shares amount				Additional paid-in capital				Unearned compensation				Accumulated other comprehensive loss				Foreign currency translation adjustments				Accumulated deficit				Treasury stock				Comprehensive income				Non controlling interest				Total
BALANCE AS OF JANUARY 1, 2021			108,010			$	430,996			$	1,393,095			$	124,762			$	(262	)		$	(16,247	)		$	(465,460	)		$	(9,072	)						$	(2,910	)		$	1,454,902
Changes during the period:
Exercise of options and RSUs			296				1,358				(995	)																															363
Employee stock-based compensation															10,877																												10,877
Other comprehensive income:
Profit																											59,188							$	59,188				2,643				61,831
Foreign currency translation adjustments																							(5,077	)											(5,077	)			(4,664	)			(9,741	)
Change in employees plan assets and benefit obligations																			(100	)															(100	)							(100	)
Unrealized loss on derivatives																			(523	)															(523	)							(523	)
Comprehensive income																																		$	53,488
BALANCE AS OF JUNE 30, 2021			108,306			$	432,354			$	1,392,100			$	135,639			$	(885	)		$	(21,324	)		$	(406,272	)		$	(9,072	)						$	(4,931	)		$	1,517,609
OUTSTANDING SHARES, NET OF TREASURY STOCK AS OF JUNE 30, 2021			108,219

See notes to consolidated financial statements.

F - 5

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(dollars in thousands)

		Six months ended
		June 30,
CASH FLOWS - OPERATING ACTIVITIES		2021				2020
Net profit		$	61,831			$	37,505
Adjustments to reconcile net profit for the period to net cash provided by operating activities:
Income and expense items not involving cash flows:
Depreciation and amortization			127,535				117,299
Effect of exchange rate differences on debentures			(1,994	)			(910	)
Other income, net			(3,227	)			(890	)
Changes in assets and liabilities:
Trade accounts receivable			12,722				(1,296	)
Other current assets			(8,983	)			5,122
Inventories			(15,484	)			(17,380	)
Trade accounts payable			(14,568	)			(12,950	)
Deferred revenue and customers' advances			16,207				(2,498	)
Employee related liabilities and other current liabilities			19,696				10,729
Long-term employee related liabilities			140				2,078
Deferred tax, net and other long-term liabilities			(13,212	)			(1,870	)
Net cash provided by operating activities			180,663				134,939
CASH FLOWS - INVESTING ACTIVITIES
Investments in property and equipment, net			(105,599	)			(125,444	)
Investments in deposits, marketable securities and other assets, net			(18,666	)			(78,786	)
Net cash used in investing activities			(124,265	)			(204,230	)
CASH FLOWS - FINANCING ACTIVITIES
Exercise of options, net			364				1,214
Loans repayment			(11,163	)			-
Principal payments on account of capital lease obligation			(17,903	)			(10,443	)
Debentures repayment			(20,078	)			(18,754	)
Net cash used in financing activities			(48,780	)			(27,983	)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE			(3,546	)			506
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			4,072				(96,768	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			211,683				355,561
CASH AND CASH EQUIVALENTS - END OF PERIOD		$	215,755			$	258,793

See notes to consolidated financial statements.

F - 6

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(dollars in thousands)

		Six months ended
		June 30,
		2021				2020
NON-CASH ACTIVITIES:
Investments in property and equipment		$	74,142			$	71,967
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash received during the period from interest, net		$	769			$	2,028
Cash paid during the period for income taxes, net		$	5,016			$	2,149

See notes to consolidated financial statements.

F - 7

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF JUNE 30, 2021

(dollars in thousands, except per share data)

NOTE 1 - GENERAL

Basis for Presentation

The unaudited condensed interim consolidated financial statements of Tower Semiconductor Ltd. (“Tower”) as of June 30, 2021 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. and its wholly-owned subsidiary, Tower Semiconductor Newport Beach, Inc. and (2) Tower Semiconductor San Antonio, Inc. and (ii) its 51% owned subsidiary, Tower Partners Semiconductor Co., Ltd. (“TPSCo”). Tower and its subsidiaries are collectively referred to as the “Company”.

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”).

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, 2020 and for the year then ended, including the notes thereto.

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.

NOTE 2 - INITIAL ADOPTION OF NEW STANDARDS

In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes” (“Topic 740”). This guidance removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU became effective on January 1, 2021 and has been initially adopted by the Company on such date, which adoption resulted in no material effect on the Company’s consolidated financial statements.

NOTE 3 - RECENT DEVELOPMENTS

In June 2021, the Company signed a definitive agreement with STMicroelectronics, an independent device manufacturer and a global semiconductor company serving customers across the spectrum of electronics applications ("ST"), to collaborate for an accelerated ramp-up of a 12-inch (300mm) state-of-the-art manufacturing facility, which is under construction in Agrate Brianza site in Italy. To implement this project, Tower is establishing a fully owned subsidiary in Italy (“TSIT”). ST and TSIT will share the clean room space and the facility infrastructure, with TSIT installing its own equipment in one third of the total space. Both companies will make significant investments in their respective process equipment and work together on the acceleration of the fab technology and equipment qualifications and subsequent manufacturing ramp-up, a key factor to reach a high utilization level and therefore a competitive wafer cost structure. Operations will continue to be managed by ST and the fab’s cost will be shared between the parties.

The products of the fab will be used in automotive, industrial and personal electronics applications and markets, and the manufacturing technologies of the fab are expected to include 130, 90 and 65nm processes for smart power, analog mixed signal, displays and analog RF processes.

F - 8