shanghai  [2004-06-04]

(Shanghai, China, June 4, 2004) Taiwan Semiconductor Manufacturing Company Ltd. recently refiled a lawsuit against Semiconductor Manufacturing International Corporation (SMIC; NYSE: SMI and HKSE: 981) in California state court based on claims of trade secret misappropriation. The claims and facts supporting these claims are substantially similar to those stated in the federal complaint which TSMC filed on December 19, 2003, and was subsequently dismissed on April 21, 2004. SMIC will vigorously defend itself from these so-called “new” claims in California state court.

SMIC emphasizes that it respects the intellectual property rights of others. SMIC has reputable technology partners and customers, and a strong and experienced technical team in house that has contributed to SMIC's success without the need to misappropriate any third party's trade secrets.

About SMIC
SMIC 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 EXT10356
Fax: 86 21 5080 2868