Shanghai, China  [2004-09-03]

Shanghai, China, September 3, 2004-Semiconductor Manufacturing International Corporation held its SMIC Technology Symposium today, attracting more than 300 visitors from IC design services providers, customers, technology partners and vendors. In his opening speech, SMIC’s President and CEO, Dr. Richard Chang, announced that SMIC has successfully developed certain new technologies such as 0.13 micron Baseline Logic, 0.15 micron Low-Voltage Logic, 0.18 HV (30V-40V) LCD driver and 0.35 EEPROM contact-less Smart Card. Currently, SMIC is developing 90 nanometer and finer line technologies, which will enable SMIC to provide frontline foundry services to global and domestic customers.

SMIC also held a press conference with its management teams, including Dr. Richard Chang, President and CEO of SMIC; Mr. Marco Mora, COO, Mr. Jimmy Lai, the Head of Investor Relations and Dr. Joseph Xie, Fellow of Business Development, for more than 20 international media outlets. Mr. Lai, announced the interim results in 2004. ”Our interim results have shown great improvement. Our year-to-year sales increased 259.0% in the first six months of 2004 to US$407.9 million, compared with US$113.6 million in the first six months of 2003. Net income increased to US$61.6 million in the first six months of 2004 compared with a net loss of US$68.6 million in the first six months of 2003.”

Dr. Chang added that, “Due to the support we have gained and the efforts of our employees, our business has continued to grow since the IPO this March. Up to the 2nd quarter this year, we have made profits in three concessive quarters. Our three fabs in Shanghai have reached a total capacity of 90,000 wpm. The capacity of Fab 7 in Tianjin has increased based on our planning and the yield has increased comparable to our Shanghai fabs. Fab 4 in Beijing had its first 12-inch wafer output after pilot production started on July 23, and mass production is estimated to commence at the end of September. The total capacity of the Fab1, 2, 3, 4, and 7 is estimated to reach our target of 125,000 wpm (8-inch equivalent) by the end of 2004.”

Moreover, SMIC announced its strategic joint venture partnership with Toppan Printing Co., Ltd. to manufacture on-chip color filters and micro-lenses, and a joint venture for assembly and testing in Chengdu with total investment of US $ 175 million.

Dr. Chang also emphasized that SMIC welcomes Taiwanese counterparts to participate in the China market to have the friendly and fair competition, and expressed hopes that the Taiwanese government will reduce its restrictions on the Taiwan semiconductor industry and consider TSMC’s appeal to open 0.18 micron technologies into China.

About SMIC
SMIC (NYSE: SMI, SEHK: 0981.HK) is one of the leading semiconductor foundries in the world. As a foundry, SMIC provides integrated circuit (IC) manufacturing at 0.35-micron to 0.13-micron technologies. Established in April 2000, SMIC, a Cayman Islands company, operates three 8-inch wafer fabrication facilities in the Zhangjiang High-Tech Park in Shanghai, and an 8-inch wafer fabrication facility in Tianjin, China. In addition, SMIC is currently constructing 12-inch wafer fabrication facilities in Beijing, China. SMIC’s Fab 1 was named one of two “Top Fabs of the Year 2003” by Semiconductor International, a leading industry publication in May 2003. In addition to IC manufacturing, SMIC provides customers with a full range of services, including design services, mask manufacturing and wafer probe test. For more information, please visit www.smics.com.

SMIC Contact:
Sarina Huang
Public Relations Department
Tel: 86-21-5080-2000 ext. 10356
Fax: 86-21-5080-2868