SMIC and IBM Sign Licensing Agreement

SHANGHAI, China, and ARMONK, N.Y. -- Dec. 26,  2007 -- Semiconductor Manufacturing International Corporation and International Business Machines today announced that they have signed an agreement to license IBM's 45-nanometer bulk complementary metal-oxide-semiconductor (CMOS) technology to SMIC for 300mm wafer foundry service.

Under the agreement, IBM will license bulk CMOS technology to SMIC. The technology can be used to fabricate devices in mobile applications such as handsets integrated with 3G, multimedia, graphics chips, and chipsets at the 45nm technology node. The technology can also support the manufacturing of graphics and other consumer devices.

"China is a rapidly growing, strategic marketplace and SMIC is the largest Chinese foundry," said Kevin Hutchings, vice president of IP Licensing for IBM.

"We are excited about the SMIC-IBM licensing partnership, which will accelerate SMIC technology advancement in logic process technology and help us provide optimal solutions for our customers at our 300mm facilities," said Matthew Szymanski, vice president of Corporate Relations for SMIC. "Coupled with IBM's expertise on design enabler and system IP comprehension, SMIC can transition our fabless customers to system-on-chip (SOC) design for the 45nm node era," said Szymanski.

The licensing agreement with IBM is part of SMIC's commitment to further strengthen its leading foundry position in China to serve customers in high growth market sectors around the world. This agreement complements SMIC's ongoing research and development progress, including its 65nm low-power technology, which is under customer product qualification.

About IBM

For further information about IBM Microelectronics, visit http://www.ibm.com/chips/

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) manufacturing service at 0.35um to 65nm and finer line technologies. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) under pilot production 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, 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 under construction in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. For more information, please visit http://www.smics.com