Press Releases

SMIC reports 2006 first quarter results

28 Apr 2006

Shanghai  [2006-04-28]

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, 2006. Sales increased 5.4% in the first quarter of 2006 to $351.1 million from $333.1 million in the prior quarter. The Company reported an increase in capacity to 157,330 8-inch equivalent wafers per month and a utilization rate of 95% in the first quarter of 2006. Operating loss decreased to $6.0 million in the first quarter of 2006 compared to an operating loss of $8.8 million in the fourth quarter of 2005. Net loss decreased to $8.7 million in the first quarter of 2006 compared to a net loss of $15.0 million in the fourth quarter of 2005.

"I am pleased to announce that our performance during the first quarter exceeded our expectations as quarterly revenues continued to increase to $351 million during the first quarter helping to narrow our operating loss to $6 million in the first quarter," said Dr. Richard Chang.

"Our revenues from 0.13 micron and below technologies increased to 47% of total revenues in the first quarter. Revenues generated from 0.15 micron and 0.13 micron and below logic products as a percentage of our logic revenues significantly increased to 14.5% and 13.3% in the first quarter from 8.6% and 10.9% in the fourth quarter. We expect that these trends will continue as we have received a significant increase in 0.13 micron full flow orders and as we commence commercial production for our first 90 nanometer product.

The NAND flash development team has successfully taped out a 2-gigabit NAND flash product during the first quarter. The development remains on schedule to deliver the first engineering samples in June and we target commercial production of this product in the fourth quarter of 2006.

Our Chengdu project began commercial production during the first quarter allowing SMIC to now offer in-house turn-key IC manufacturing for our customers. In addition, our solar power module project is moving along nicely and continues to improve its energy conversion rate. This project is on schedule for starting commercial production in the second quarter of this year.

We believe that the execution of our business plans will lead to an increase in shareholder value."

SMIC Q1 earnings release

About SMIC

Semiconductor Manufacturing International Corporation ("SMIC", NYSE: SMI and HKSE: 0.981.HK), headquartered in Shanghai, China, is an international company and one of the leading semiconductor foundries in the world, providing integrated circuit (IC) manufacturing at 0.35um to 90nm and finer line technologies to customers worldwide. Established in 2000, SMIC has four 8-inch wafer fabrication facilities in volume production in Shanghai and Tianjin. In the first quarter of 2005, SMIC commenced commercial production at its 12-inch wafer fabrication facility in Beijing, the first 12-inch fab in China. SMIC also maintains customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. SMIC's pool of talents includes over 2,500 semiconductor industry experts and technical staff. SMIC has achieved ISO9001, ISO/TS16949, OHSAS18001, TL9000, BS7799 and ISO14001 certifications. For additional information, please visit

Safe harbor statements
(Under the Private Securities Litigation Reform Act of 1995)

This press release may contain, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding our expectation that the revenues generated from 0.13 micron as a percentage of our overall revenue and 0.15 micron and 0.13 micron logic products as a percentage of our logic revenues, the commencement of commercial production of our first 90 nanometer products, and targeted dates for commercial production of a 2-gigabit NAND flash product and of our solar power module project, our belief that execution of our business plans will lead to an increase in shareholder value, our planned capital expenditures for 2006 under "Cashflow & Capital Expenditure" below and the statements under "2Q06 Outlook" below, are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words.

These forward-looking statements are necessarily estimates reflecting the best judgment of SMIC's senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with cyclicality and market conditions in the semiconductor industry, intense competition, timely wafer acceptance by SMIC's customers, timely introduction of new technologies, SMIC's ability to ramp new products into volume, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, availability of manufacturing capacity and financial stability in end markets.

Investors should consider the information contained in SMIC's filings with the U.S. Securities and Exchange Commission (SEC), including its annual report on Form 20-F filed with the SEC on June 28, 2005, especially in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections, and its registration statement on Form A-1 as filed with the Stock Exchange of Hong Kong (SEHK) on March 8, 2004, and such other documents that SMIC may file with the SEC or SEHK from time to time, including on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC’s future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release.

Except as required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.

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