SMIC Reports 2015 Fourth Quarter Results

SHANGHAI, Feb. 18, 2016 -- 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 December 31, 2015.

Fourth Quarter 201 5 Highlights

• Revenue was a record high of $610.1 million in 4Q15, increased by 7.1 % QoQ from $569.9 million in 3Q15 and increased by 25.6% YoY from $485.9 million in 4Q14.
• Gross profit was $173.9 million in 4Q15, compared to 182.4 million in 3Q15 and $109.3 million in 4Q14.
• Gross margin was 28.5% in 4Q15, compared to 32.0% in 3Q15 and 22.5% in 4Q14.
• Net profit for the period attributable to SMIC was $38.6 million in 4Q15, as compared to $82.6 million in 3Q15 and $28.4 million in 4Q14.

First Quarter 201 6 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 22% to 25%.
• Non-GAAP operating expenses excluding the effect of employee bonus accrual, government funding and gain from the disposal of living quarters to range from $121 million to $126 million.
• Non-controlling interests of our majority-owned subsidiaries to range from positive $16 million to positive $18 million (losses to be borne by non-controlling interests).

Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director commented, "In the fourth quarter of 2015 we achieved record-high revenue of $610.1 million, a growth of 25.6% year over year and 7.1% quarter over quarter, surpassing our original expectations and guidance. On an annual basis our revenue hit a record high of $2.24 billion, a growth of 13.5% compared to 2014. In 2015 we also achieved historical highs on all measures of profitability: gross margin, operating profit, and net profit. Despite the inventory correction in the industry during the year, we maintained full utilizations throughout 2015.

To address our 28nm status, we started to book minor 28nm revenue contribution in Q3 2015 and Q4 2015. We are pleased to have announced earlier this week that our high-k metal gate ("HKMG") technology is ready for commercialization with a purchase order from our customer, Leadcore. We target to reach double digit revenue contribution from 28nm in Q4 2016. We believe 28nm will be a long-lived node and is strategic for the long-term growth of SMIC. Our flexible 28nm and 40nm capacity has enabled us to best utilize our capacity and address our customers' needs.

To meet the strong customer demand and address the high utilization, we continue to improve operational efficiency and grow our capacity. By the end of this year we target to increase our Shenzhen fab capacity to approximately 30K 8" wafers per month, our Beijing joint-venture fab to 15K 12" wafers per month, and our Shanghai 12" fab to 20K 12" wafers per month.

Regionally, our China revenue contribution has grown more than 25% YoY in 2015 compared to 2014. Eurasia revenue contribution has grown more than 50% year over year. Meanwhile, North America has declined 9.3% year over year but has begun to recover in the second half of 2015.

With the large opportunities presented to us being in China, we strive to capture the attractive prospects with profitability as our underlying objective. In order to address many of the opportunities at hand, SMIC plans to grow through both organic and inorganic means.

We are optimistic about 2016 given our strategy and execution track record. So far the first half of 2016 looks strong and we stay committed to maintaining sustainable profitability and increasing value for all stakeholders."

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.