Construction Begins on Central China's First 12-inch Fab

Semiconductor Manufacturing International Corporation (“SMIC”, NYSE: SMI; SEHK: 981), one of the leading foundries in the world, today announced that the first 12-inch (or 300mm) fab in Central China began construction in the Wuhan East Lake New Technology Development Zone, Hubei Province, China.

The groundbreaking ceremony was attended by Yu Zheng Sheng, Politburo member of Central Committee and Secretary of Hubei provincial party, Luo Qing Quan, Governor of Hubei Province, Chen Yu Jie, Director of the Overseas Chinese Affairs Office of the State Council, Li Hai Feng, Deputy Director of the Overseas Chinese Affairs Office of the State Council and Richard Chang, President and CEO of SMIC.

The facility will be financed by an investment company associated with the Hubei provincial government, Wuhan City government and Wuhan East Lake New Technology Development Zone. The company, the Wuhan Xinxin Semiconductor Manufacturing Corp, will own the facility and has engaged SMIC to manage the facility. The fab is scheduled to be completed by the end of 2007, and commercial production is scheduled to start in the first half of 2008. The monthly 12-inch wafer capacity is estimated to be 12,500 initially and increase progressively up to 20,000 – 25,000 in 2009.

“We recognize the important contribution that SMIC has made to China’s semiconductor industry. The Hubei Province will provide the necessary infrastructure support in order to help build up a world-class semiconductor industry in the region,” said Miao Wei, Secretary of the Wuhan Municipal Committee.

“We are grateful that the Hubei provincial government and the Wuhan City government have provided such invaluable support to the semiconductor industry in the region, ” said Richard Chang, President and CEO of SMIC. “We have every confidence in the future prospects of the Wuhan fab.”

About SMIC
SMIC (NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) manufacturing service at 0.35um to 90nm and finer line technologies. Headquartered in Shanghai, China, SMIC operates three 200mm fabs in Shanghai and one in Tianjin, and one 300mm fab in Beijing, the only one of its kind in Mainland China. SMIC has customer service and marketing offices in the U.S., Italy, and Japan as well as a representative office in Hong Kong.