SMIC Reports 2011 First Quarter Results

Shanghai -- May 19, 2011 -- 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 March 31, 2011.

First Quarter 2011 Highlights:

• Revenue down by 9.3% to $370.6 million in 1Q11 from $408.6 million in 4Q10 and up by 7.2% compared to 1Q10.
• Gross margin was 18.6% in 1Q11 compared to 24.3% in 4Q10 primarily due to a decline in fab utilization.
• Net cash flow from operations decreased to $73.4 million in 1Q11 from $248.6 million in 4Q10.
• Income attributable to holders of ordinary shares was US$10.2 million in 1Q11, compared to income of US$68.6 million in 4Q10.
• Diluted EPS was $0.02 per ADS.

Second Quarter 2011 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 decline between 3% to 7%.
• Gross margin is expected to range from 15% to 18%.
• Operating expenses excluding foreign exchange differences are expected to range from $82 million to $86 million.

Dr. David NK Wang, President and Chief Executive Officer of SMIC commented, "Highlighting our first-quarter performance, revenue increased 7% year-over-year and decreased 9% quarter-over-quarter to US$371 million. The quarter-over-quarter revenue decline was largely due to first quarter seasonality and our key customers' transition to our 65nm and 45nm. Despite these situations, China displays resilience and in the first quarter, China sales grew 54% year-over-year and 3% quarter over quarter and now accounts for 36% of our revenue.

"We are happy to have announced an agreement with China Investment Corporation (or "CIC"), a sovereign wealth fund investment institution, to invest in SMIC for convertible preferred shares and warrants. These capital injections will further help SMIC to expand its technology roadmap and strengthen our foothold as one the leading foundries globally."

Dr. Wang further remarked, "On May 12th we announced the signing of a joint venture with Hubei Science & Technology Investment Corporation, to jointly invest in and manage the 12-inch wafer production line of Wuhan Xinxin. This joint cooperation will serve as a strategic component in our expansion plan over the next five years and will allow us to quickly expand and increase market share on advanced technology capacity."

Dr. Wang later added, "Despite the short-term setbacks, we look forward to regaining growth in the second half of 2011. The short-term customer transitions will continue to impact our business performance in second quarter 2011, but given our successful funding, capacity ramping, enhanced technology mix, operational improvements, and China positioning, we are on track in executing sustainable competitiveness for the long-term."

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. 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 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. For more information, please visit www.smics.com  

The rest of this press release can be found at: http://www.smics.com.hk/html/ir_calendar.php