Exhibit 99.1

TOWER SEMICONDUCTOR LTD.

AND SUBSIDIARIES

UNAUDITED CONDENSED INTERIM

CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

INDEX TO UNAUDITED CONDENSED INTERIM

CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020

	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,
	2020			2019
A S S E T S
CURRENT ASSETS
Cash and cash equivalents	$	258,793		$	355,561
Short-term interest-bearing deposits		269,263			215,609
Marketable securities		195,886			176,070
Trade accounts receivable		128,401			126,966
Inventories		210,129			192,256
Other current assets		28,158			22,019
Total current assets		1,090,630			1,088,481
LONG-TERM INVESTMENTS		41,219			40,085
PROPERTY AND EQUIPMENT, NET		765,895			681,939
GOODWILL AND INTANGIBLE ASSETS, NET		16,298			17,281
DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET		91,834			105,047
TOTAL ASSETS	$	2,005,876		$	1,932,833
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	79,668		$	65,932
Trade accounts payable		154,517			119,199
Deferred revenue and customers' advances		8,455			10,322
Employee related liabilities		59,079			50,302
Other current liabilities		9,113			7,301
Total current liabilities		310,832			253,056
LONG-TERM DEBT		219,764			245,821
LONG-TERM CUSTOMERS' ADVANCES		27,570			28,196
EMPLOYEE RELATED LIABILITIES		14,970			13,285
DEFERRED TAX LIABILITY		40,075			45,238
OTHER LONG-TERM LIABILITIES		521			514
TOTAL LIABILITIES		613,732			586,110
THE COMPANY'S SHAREHOLDERS' EQUITY		1,398,009			1,354,547
Non-controlling interest		(5,865	)		(7,824	)
TOTAL SHAREHOLDERS' EQUITY		1,392,144			1,346,723
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,005,876		$	1,932,833

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,
	2020			2019			2020			2019
REVENUES	$	610,261		$	616,171		$	310,090		$	306,064
COST OF REVENUES		500,013			499,613			252,385			252,657
GROSS PROFIT		110,248			116,558			57,705			53,407
OPERATING COSTS AND EXPENSES:
Research and development		38,838			37,980			19,424			18,812
Marketing, general and administrative		32,845			33,479			16,154			16,838
		71,683			71,459			35,578			35,650
OPERATING PROFIT		38,565			45,099			22,127			17,757
FINANCING AND OTHER INCOME (EXPENSE), NET		(282	)		1,672			1,831			947
PROFIT BEFORE INCOME TAX		38,283			46,771			23,958			18,704
INCOME TAX BENEFIT (EXPENSE), NET		(778	)		(649	)		(2,484	)		1,018
NET PROFIT		37,505			46,122			21,474			19,722
Net loss (income) attributable to non-controlling interest		(1,433	)		1,030			(2,422	)		1,214
NET PROFIT ATTRIBUTABLE TO THE COMPANY	$	36,072		$	47,152		$	19,052		$	20,936
BASIC EARNINGS PER ORDINARY SHARE:
Earnings per share	$	0.34		$	0.45		$	0.18		$	0.20
Weighted average number of ordinary shares outstanding		106,885			105,829			106,956			106,321
DILUTED EARNINGS PER ORDINARY SHARE:
Earnings per share	$	0.33		$	0.44		$	0.18		$	0.20
Net profit used for diluted earnings per share	$	36,072		$	47,152		$	19,052		$	20,936
Weighted average number of ordinary shares outstanding used for diluted earnings per share		108,213			107,078			108,277			107,178

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,
	2020			2019			2020			2019
Net profit	$	37,505		$	46,122		$	21,474		$	19,722
Other comprehensive income, net of tax:
Foreign currency translation adjustment		(124	)		2,672			556			4,323
Change in employees plan assets and benefit obligations, net of taxes		(130	)		115			(65	)		172
Unrealized gain (loss) on derivatives		(1,473	)		1,639			4,662			(431	)
Comprehensive income		35,778			50,548			26,627			23,786
Comprehensive income attributable to non-controlling interest		(1,959	)		(496	)		(3,091)			(939	)
Comprehensive income attributable to the Company	$	33,819		$	50,052		$	23,536		$	22,847

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			Capital notes		Unearned compensation		Accumulated other comprehensive income			Foreign currency translation adjustments			Accumulated deficit			Treasury stock			Comprehensive income			Non controlling interest			Total
BALANCE AS OF JANUARY 1, 2020		106,895	$	426,111	$	1,395,376		$	--	$	107,774	$	1,906		$	(20,150	)	$	(547,398	)	$	(9,072	)				$	(7,824	)	$	1,346,723
Changes during the period:
Exercise of options and RSUs		454		1,952		(647	)																								1,305
Employee stock-based compensation											8,338																				8,338
Other comprehensive income:
Profit																			36,072					$	36,072			1,433			37,505
Foreign currency translation adjustments																(650	)								(650	)		526			(124	)
Change in employees plan assets and benefit obligations													(130	)											(130	)					(130	)
Unrealized loss on derivatives													(1,473	)											(1,473	)					(1,473	)
Comprehensive income																								$	33,819
BALANCE AS OF JUNE 30, 2020		107,349	$	428,063	$	1,394,729		$	--	$	116,112	$	303		$	(20,800	)	$	(511,326	)	$	(9,072	)				$	(5,865	)	$	1,392,144
OUTSTANDING SHARES, NET OF TREASURY STOCK AS OF JUNE 30, 2020		107,262

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	2020			2019
Net profit	$	37,505		$	46,122
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		117,299			104,867
Effect of exchange rate differences on debentures		(910	)		6,205
Other income, net		(890	)		(445	)
Changes in assets and liabilities:
Trade accounts receivable		(1,296	)		31,271
Other current assets		5,122			(5,755	)
Inventories		(17,380	)		(3,017	)
Trade accounts payable		(12,950	)		(15,204	)
Deferred revenue and customers' advances		(2,498	)		(13,649	)
Employee related liabilities and other current liabilities		10,729			(1,846	)
Long-term employee related liabilities		2,078			39
Deferred tax, net and other long-term liabilities		(1,870	)		(1,564	)
Net cash provided by operating activities		134,939			147,024
CASH FLOWS - INVESTING ACTIVITIES
Investments in property and equipment, net		(125,444	)		(85,445	)
Investments in deposits, marketable securities and other assets, net		(78,786	)		(33,825	)
Net cash used in investing activities		(204,230	)		(119,270	)
CASH FLOWS - FINANCING ACTIVITIES
Exercise of options		1,214			397
Principal payments on account of capital lease obligation		(10,443	)		(10,549	)
Debentures repayment		(18,754	)		--
Net cash used in financing activities		(27,983	)		(10,152	)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE		506			2,465
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(96,768	)		20,067
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		355,561			385,091
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	258,793		$	405,158

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,
	2020		2019
NON-CASH ACTIVITIES:
Investments in property and equipment	$	71,967	$	35,529
Conversion of notes into share capital	$	--	$	20,758
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash received during the period from interest, net	$	2,028	$	1,226
Cash paid during the period for income taxes, net	$	2,149	$	10,178

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, 2020

(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, 2020 include the financial statements of Tower and (i) its wholly-owned subsidiary Tower US Holdings Inc., the sole owner of: (1) Tower Semiconductor US Tech Holdings, Inc. (formerly named “Jazz US Holdings Inc.”) and its wholly-owned subsidiary, Tower Semiconductor Newport Beach, Inc. (formerly named “Jazz Semiconductor, Inc.”) and (2) Tower Semiconductor San Antonio, Inc. (formerly named “TowerJazz Texas Inc.”), and (ii) its 51% owned subsidiary, Tower Partners Semiconductor Co., Ltd. (formerly named “TowerJazz Panasonic 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, 2019 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”). The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also clarifies and amends existing guidance to improve consistent application among reporting entities. The guidance will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements.

NOTE 3 - RECENT DEVELOPMENTS

In November 2019, Panasonic Corporation announced it will sell its fully-owned subsidiary, Panasonic Semiconductor Solution Co., Ltd (“PSCS”), which holds 49% in TPSCo, to Nuvoton Technology Corporation, a Taiwan-based semiconductor company, which is an affiliate of Winbond Electronics Corporation. The transaction is subject to regulatory and / or other approvals and has not yet closed.

In May 2020, the Company received approval of its shelf prospectus filed in Israel, to serve as a platform for future possible issuance of securities. No decision has been made to date with respect to any specific type of securities to be

issued or its timing, if any.

F - 8