SMIC Reports Results for the Three Months Ended June 30, 2010

Shanghai  -- August 10, 2010 -- Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) (“SMIC” or the “Company”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended June 30, 2010.

Second Quarter 2010 Highlights:

• Revenue up by 8.4% to $381.1 million in 2Q10 from $351.7 million in 1Q10 and up by 42.5% compared to 2Q09.
• Gross margins improved to 15.6% in 2Q10 compared to 14.6% in 1Q10 primarily due to an increase in utilization.
• Net cash flow from operations has increased to $167.5 million in 2Q10 from $153.3 million in 1Q10.
• Gain attributable to holders of ordinary shares was US$96.0 million in 2Q10, compared to loss of US$181.9 million in 1Q10, driven by a change in the fair value of US$105.9 million gain of commitment to grant shares and warrants.
• Fully diluted EPS was $0.20 per ADS.

Third Quarter 2010 Guidance:

The following statements are forward looking statements which are based on current expectation and which involve risks and uncertainties, some of which are set forth under “Safe Harbor Statements” below.

• Revenue is expected to range from 4% to 6% increase.
• Gross margin is expected to range from 20% to 22%.
• Operating expenses excluding foreign exchange differences are expected to range from $80 million to $84 million.
• 2010 annual capital expenditures expected to range from $700 million to $750 million.

Commenting on the quarterly results, Dr. David NK Wang, President and Chief Executive Officer of SMIC remarked, "We’ve witnessed overall improvement this quarter, and believe we are on course to profitability. With the world’s highest GDP growth, China’s market is playing a progressively greater part in the overall demand for IC’s and playing an increasingly key role in SMIC’s future success. Driven by China’s maturing fabless companies, our China revenue has grown 27.4% quarter-over-quarter. As Chinese fabless companies continue to grow stronger and stronger, SMIC has positioned itself to become the preferred foundry. North American customers continue to contribute more than half of our revenue, and we are working to build up the relationships through improved operations, technology and service.

From a technology stand-point, our 65- nanometer process is solid and ramping up, with shipments more than doubling quarter-over-quarter and likely to double again in the coming quarter. Our 45/40-nanometer development is well underway, and the technology will be ready by the end of 2010. We remain aggressive in turning this company around, determined to sustain our competitiveness by meeting our customers’ needs with excellence while balancing increasing scale with sustainable profitability."

Conference Call / Webcast Announcement

• Date: Wednesday, August 11, 2010
• Time: 8:30 a.m. Shanghai time
• Dial-in numbers and pass code:
• US 1-617-614-3672 (Pass code: SMIC)
• HK 852-3002-1672 (Pass code: SMIC)

A live webcast of the 2010 second quarter announcement will be available at http://www.smics.com under the “Investor Relations” section

An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.

About SMIC

Semiconductor Manufacturing International Corporation (“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) foundry and technology services at 0.35-micron to 45/40-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a 200mm fab under construction in Shenzhen, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation, and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. For more information, please visit: www.smics.com