SMIC Reports 2015 Second Quarter Results

Shanghai, China –August 11, 2015 -- 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, 2015.

Second Quarter 2015 Highlights

• Revenue was a record high of $546.6 million in 2Q15, increased 7.2% QoQ from $509.8 million in 1Q15 and increased 6.9% YoY from $511.3 million in 2Q14.
• Gross profit was a record high of $176.4 million in 2Q15, increased 17.7% QoQ from $149.9 million in 1Q15 and increased 23.3% YoY from $143.1 million in 2Q14
• Gross margin was a record high of 32.3% in 2Q15, compared to 29.4% in 1Q15 and 28.0% in 2Q14.
• Profit for the period attributable to SMIC was $ 76.7 million in 2Q15, compared to $55.5 million in 1Q15 and $56.8 million in 2Q14. Excluding the gain of commitment to grant shares and warrants in 2Q10, profit for the period attributable to SMIC was a record high in 2Q15.
• China-region revenue contributed 51.1% of overall revenue in 2Q15, a record high for the Group.

Third Quarter 2015 Guidance:

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

• Revenue to increase by 1% to 3% quarter over quarter.
• Gross margin to range from 28% to 30%.
• Non-GAAP operating expenses excluding the effect of employee bonus accrual, government funding and gain from the disposal of living quarters to range from $134 million to $139 million.
• Non-controlling interests of our majority-owned subsidiaries to range from positive $11 million to positive $13 million (losses to be borne by non-controlling interests).

Dr. Tzu-Yin Chiu, SMIC’s Chief Executive Officer and Executive Director, commented, “SMIC has achieved two quarters of consecutive growth in 2015 and we are guiding an additional quarter of growth for the third quarter. With some customers undergoing inventory adjustments, SMIC has successfully ramped up new products keeping our fabs well utilized.

The second quarter of 2015 was our best quarter to date with record-high revenue of $546.6 million and gross margin of 32.3%. In the second quarter shipments and utilization exceeded our expectations, resulting in 7.2% quarter over quarter revenue growth. We achieved a profit attributable to SMIC of $76.7 million, an increase of 38.3% quarter over quarter and 35.0% year over year.

Our China revenue share has continued to increase in the past quarters and in Q2 China-region revenue contributed more than half our revenue for the first time. SMIC is in a key position as the largest and most advanced foundry in China to capture the many opportunities stemming from China.”

Conference Call / Webcast Announcement

Date: August 12, 2015
Time: 8:30 a.m. Shanghai time
Dial-in numbers and pass code:

China	+86 400-620-8038	(Pass code: SMIC)
Hong Kong	+852 3018-6771	(Pass code: SMIC)
Taiwan	+886 2-2650-7825	(Pass code: SMIC)
United States, New York	+1 845-675-0437	(Pass code: SMIC)

The call will be webcast live with audio at http://www.smics.com/eng/investors/ir_presentations.php or http://edge.media-server.com/m/p/ijmh7wth.

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. SMIC provides integrated circuit (IC) foundry and technology services at 0.35-micron to 28-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab and a second majority owned 300mm fab under development for advance nodes in Beijing; and 200mm fabs in Tianjin and Shenzhen. SMIC also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong.

For more information, please visit www.smics.com.