Tower Semiconductor Ltd. — Regulatory Filings 2007

Nov 15, 2007

Tower Semiconductor Opens Taiwan Representative Office to Expand Presence in Asia Pacific Region

Further Broadens Support for Current Customers and Marketing to New Customers

MIGDAL HAEMEK, Israel, November 15, 2007 – Tower Semiconductor Ltd. (NASDAQ: TSEM; TASE: TSEM), an independent specialty foundry, today announced the opening of a representative office in Taiwan to support its increasing presence throughout the Asia Pacific region. Tower’s new office will be located in Hsinchu and will serve existing and future regional customers.

“Tower began serving customers within the Taiwan market more than five years ago, and since then, we have grown the number of local customers to a full dozen,” said Russell Ellwanger, CEO of Tower. “Opening a representative office in Taiwan is part of Tower’s strategy to enhance its business activities in the Asia Pacific region, and serves as a foundation to further expand our presence throughout additional countries within the area.”

The Taiwan-based representative office will provide applications and logistical support to Tower’s existing customers, and will also perform marketing activities aimed at the local market to increase its customer base. The company’s specialty foundry focus is a perfect match to many Taiwanese fabless companies that seek professional manufacturers, such as Tower, who provide specialized expertise within designated manufacturing areas. Tower serves about a dozen customers in Taiwan, amongst them are Macronix, Modiotek, Winbond, MagicPixel and ViTi.

Tower provides cost effective manufacturing foundry services in digital CMOS process technologies. In addition, Tower specializes in the production and support of products in the mixed-signal and RF-CMOS, CMOS image sensors, power management and power devices and embedded NVM domains.

Currently, Tower operates two foundry facilities in Israel: Fab1 is a 6-inch wafer Fab and produces in 1.0- to 0.35- microns. Fab2 is a state-of-the-art, 8-inch wafer Fab that manufacturers in 0.18-, 0.16- (in aluminum) and 0.13-microns (in copper). Tower is in the process of ramping its Fab2 to over 30,000 wafers per month.

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About Tower Semiconductor Ltd.:

Tower Semiconductor Ltd. (Nasdaq: TSEM, TASE: TSEM) is an independent specialty foundry that delivers customized solutions in a variety of advanced CMOS technologies, including digital CMOS, mixed-signal and RF (radio frequency) CMOS, CMOS image sensors, power management devices, and embedded non-volatile memory solutions. Tower’s customer orientation is complemented by its uncompromising attention to quality and service. Its specialized processes and engineering expertise provides highly flexible, customized manufacturing solutions to fulfill the increasing variety of customer needs worldwide. Offering two world-class manufacturing facilities with standard and specialized process technologies ranging from 1.0- to 0.13-micron, Tower Semiconductor provides exceptional design support and technical services to help customers sustain long-term, reliable product performance, while delivering on-time and on-budget results. More information can be found at http://www.towersemi.com.

Safe Harbor:

This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. A complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect our business is included under the heading "Risk Factors" in our most recent Annual Report on Forms 20-F, F-1, F-3 and 6-K, as were filed with the Securities and Exchange Commission and the Israel Securities Authority. We do not intend to update, and expressly disclaim any obligation to update, the information contained in this release.

Contacts:

Tower Semiconductor Taiwan Jerry Wang, +886 (0)920 037 678 Taiwan_office@towersemi.com

or

Tower Semiconductor USA Michael Axelrod, +1 408 330 6871 pr@towersemi.com

or

Shelton Group Melissa Conger, +1 972 239 5119 ext. 137 mconger@sheltongroup.com