SMIC Reports 2012 Second Quarter Results

SHANGHAI, Aug. 8, 2012  -- 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, 2012. 

First Quarter 2012 Highlights:

• Record-high quarterly revenue of $421.8 million in 2Q12, which was up by 26.8% from $332.7 million in 1Q12 and jumped by 19.7% year over year.
• Gross margin doubled to 24.1% in 2Q12 compared to 12.0% in 1Q12, primarily due to a higher utilization rate and continued improvements in manufacturing efficiency.
• Net cash flow from operations tripled to $109.4 million in 2Q12 from $35.8 million in 1Q12.
• Income attributable to Semiconductor Manufacturing International Corporation was $7.1 million in 2Q12, compared to a loss of $42.8 million in 1Q12.
• Diluted EPS was $0.01 per ADS.

Third Quarter 2012 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.

• Revenue is expected to increase between 4% and 6%.
• Gross margin is expected to range from 22% to 24%.
• Operating expenses excluding foreign exchange differences and government grants are expected to range from $93 million to $96 million.

Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director, remarked, "I am very pleased to report solid second quarter results with revenue of US$421.8 million. This is a new sales record for SMIC with a quarter-over-quarter increase of 26.8% and growth of 19.7% over the same period last year.  We have a positive operating profit and a net profit of US$7.1 million. SMIC has benefited from strong customer demand across the board and in particular an 87% quarter-to-quarter increase in our 65/55nm revenue.  We are also experiencing a strong demand increase for our specialty processes, including power management ICs, EEPROM, and others.  As a result, the overall revenue growth exceeded our original guidance.

"We are enjoying good overall fab utilization as a result of industry demand improvement and our internal efforts. The second quarter overall utilization was 95%, as compared to 74% in the first quarter.

"Our China revenue continues to grow along with China's semiconductor market. In the second quarter of 2012, our China revenue grew 28% quarter-over-quarter, equivalent to about 33% of our total revenue in the second quarter of 2012."

For a complete version of "SMIC Reports 2012 Second Quarter Results" including financial tables, please go to the following link: http://www.prnasia.com/sa/attachment/2012/08/20120808184325924568.1_.pdf

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 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, and a 200mm fab under construction in Shenzhen. SMIC also has customer service and marketing offices in the U.S., Europe, Japan, and Taiwan, 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