SCHEDULE: Harel Insurance Adjusts Tower Semiconductor Stake

Harel Insurance Investments & Financial Services Ltd. reported a 4.9% passive stake in Tower Semiconductor Ltd. as of June 30, 2025, primarily held on behalf of clients.

Summary

• Harel Insurance Investments & Financial Services Ltd. filed an Amendment No. 5 to its Schedule 13G regarding its beneficial ownership in Tower Semiconductor Ltd.
• As of June 30, 2025, Harel beneficially owned an aggregate of 5,454,892 Ordinary Shares of Tower Semiconductor Ltd.
• This represents 4.9% of Tower Semiconductor's outstanding Ordinary Shares, based on 111,845,587 shares issued and outstanding as of May 31, 2025.
• The majority of these shares, 5,341,589, are held for members of the public through provident funds, mutual funds, pension funds, insurance policies, and exchange-traded funds managed by Harel's subsidiaries.
• An additional 32,466 shares are held by third-party client accounts managed by a subsidiary, which has no voting power over these securities.
• Harel directly holds 80,837 Ordinary Shares for its own account.
• Harel certifies that the securities were not acquired or held for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 4

Explanation: The filing indicates a reduction in the reported stake below the 5% threshold, which could be interpreted as a slight negative signal or a rebalancing by a passive investor. However, the continued significant holding by a major institution still reflects some level of confidence.

Positives

• Harel Insurance, a significant financial institution, maintains a substantial investment in Tower Semiconductor, indicating continued confidence in the company's long-term prospects.
• The majority of the shares are held on behalf of clients, reflecting Harel's role as a fund manager rather than an activist investor, which suggests a stable, passive investment.

Negatives

• The reported beneficial ownership percentage of 4.9% is below the 5% threshold, indicating a reduction in Harel's stake or a relative decrease in ownership due to share issuance, which could be interpreted as a slight negative signal or a rebalancing.

Risks

• The filing is a passive ownership disclosure and does not detail specific operational or financial risks related to Tower Semiconductor Ltd. or its business.

Future Outlook

The filing is a passive ownership disclosure and does not contain forward-looking statements or guidance from Tower Semiconductor Ltd. or Harel Insurance regarding future performance or strategic direction.

Management Comments

• The filing includes a certification from Harel Insurance Investments & Financial Services Ltd. stating that the securities were not acquired or held for the purpose of changing or influencing the control of Tower Semiconductor Ltd.

Industry Context

This filing reflects a passive investment by a major Israeli financial institution in a global semiconductor manufacturer. The semiconductor industry is highly capital-intensive and subject to global supply chain dynamics and rapid technological advancements. Institutional holdings like this are common and reflect investor confidence in the long-term prospects of companies within the sector.

Comparison to Industry Standards

• As a Schedule 13G filing, this document primarily reports a passive ownership stake and does not provide operational or financial results for comparison. Therefore, direct comparisons to industry-specific performance benchmarks or competitor results are not applicable within the scope of this filing.

Stakeholder Impact

• Shareholders: The reduction in stake by a significant institutional investor might be perceived negatively, potentially influencing investor sentiment.
• Employees, Customers, Suppliers, Creditors: No direct impact is indicated by this passive ownership filing.

Next Steps

• The filing does not specify any future actions or milestones for Tower Semiconductor Ltd. or Harel Insurance Investments & Financial Services Ltd. beyond the ongoing passive investment.

Key Dates

Recommendation

While the stake reduction below 5% is a slight negative signal, Harel Insurance still holds a substantial number of shares. This is a passive investment report, not an operational update. Without further information on the reasons for the stake reduction or the company's performance, a 'hold' recommendation is appropriate, suggesting investors monitor future filings and company performance.

Keywords

Tower Semiconductor, Harel Insurance, Schedule 13G, Passive Investment, Semiconductor Industry, Shareholding, Institutional Investor, Israel