SMIC and JCET Establish a Joint Venture to Build China's Local IC Manufacturing Supply Chain

      SMIC and JCET Establish a Joint Venture to Build China's Local IC
                          Manufacturing Supply Chain

PR Newswire

SHANGHAI, Feb. 20, 2014

SHANGHAI, Feb. 20, 2014 /PRNewswire/ -- Semiconductor Manufacturing
International Corporation ("SMIC", NYSE: SMI; SEHK: 981), China's largest and
most advanced semiconductor foundry, and Jiangsu Changjiang Electronics
Technology Co., Ltd. ("JCET", SSE: 600584), the largest packaging service
provider in China, jointly announced today a joint venture for 12" bumping and
related testing. JCET will also build advanced back-end package production
lines nearby. The two parties will use this as a base to jointly set up and
develop an IC manufacturing supply chain within China to provide a
high-quality, efficient and convenient one-stop-shop service for global
customers focusing on the China market.

Bumping is a necessity for wafer yield testing of advanced front-end IC
manufacturing technologies, and the basis for the 3D wafer level packaging
technology development. With the rapid growth of mobile market in China, and
increasing adoption of advanced 40nm and 28nm process technologies, IC
chipsand theirdemand for bumping are anticipated to grow rapidly in the next
few years

By establishing Bumping and nearby advanced flip-chip packaging capabilities,
along with SMIC's front-end 28nm process technology offerings, the first
complete 12" advanced IC manufacturing local supply chain in China will be
formed. This supply chain can greatly reduce the cycle time between FEOL
(Front-end of Line) and MEOL (Middle-end of Line) / BEOL (Back-end of Line),
and effectively control the intermediate costs. More importantly, it is closer
to the end market in China, therefore it can shorten the time to market for
fabless customers while focusing on China's mobile market.

Using this as a foundation, both sides will also strengthen the co-operation
in the 3D wafer level packaging field.

"Collaborating with China's largest packaging service provider meets SMIC's
long-term strategy of cultivating China's IC ecosystem," said Dr. Tzu-Yin
Chiu, Chief Executive Officer & Executive Director of SMIC. "By jointly
cooperating in the bumping line and having JCET's advanced package process
next door, we will be able to provide an one-stop-shop service with mutual
benefits, and establish the first 12" advanced IC manufacturing local supply
chain in China. It is a strategic and necessary step for SMIC to take to
provide more value-added services to customers."

"In combination with SMIC's strong capabilities of front-end wafer
manufacturing and technology R&D, and JCET's experience in core semiconductor
packaging technologies, this joint venture has complementary advantages for
both sides," said Mr. Wang Xinchao, Chairman of JCET. "Together, we will
devote our efforts to build a supply chain which is the most suitable for
meeting customers' requirements, and to elevate and enhance the level and
competitiveness of China's IC manufacturing eco-system."

About JCET

As a well-known semiconductor assembly and testing company and the chairman
member of the strategic alliance of IC industrial chain technological
innovation, Jiangsu Changjiang Electronics Technology Co., Ltd. (JCET) was
established in 1972, with a registered capital of USD139 million , and total
assets of USD1.3billion. In 2003, JCET is listed in the A-Share Section on
Shanghai Stock Exchange, which is the first listed company in the
semi-conductor assembly and testing industry in Mainland China. In 2012 JCET
was ranked as NO.7 Company in the global semiconductor assembly and testing
industry with a sales volume of 714 million USD (NO.1 in Mainland China).

JCET enjoys more than 600 domestic and foreign patents, of which about 40% are
invention patents, and took the lead into the TSV, RF-SiP and 3D-RDL, copper
pillar bump, HD-FCBGA and 25μm thickness chips stacking, MEMS, MIS and PoP -
nine major fields of international IC technology and realized the mass
production of the MIS, WL-CSP and SiP, CPB and flip-chip products.

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 40-nanometer
and begins to offer advanced 28nm process technology. Headquartered in
Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm
mega-fab in Shanghai, a 300mm mega-fab in Beijing, a 200mm fab in Tianjin, and
a 200mm fab project under development 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. For more information, please visit
www.smics.com.

Safe Harbor Statements

(Under the Private Securities Litigation Reform Act of 1995)

This document contains, 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 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
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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, financial stability in end markets and
intensive intellectual property litigation in high tech industry.

In addition to the information contained in this document, you should also
consider the information contained in our other filings with the SEC,
including our annual report on Form 20-F filed with the SEC on April 15, 2013,
as amended on December 19, 2013, especially in the "Risk Factors" section and
such other documents that we 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 our future results, performance or achievements.
In light of these risks, uncertainties, assumptions and factors, the
forward-looking events discussed in this document 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 document.

JCET Contact Information:
Zhu Zhengyi
Tel: +86-510-86851811
Email: zzy@cj-elec.com

SMIC Contact Information:
English Media
Michael Cheung
Tel: +86-21-3861-0000 x16812
Email: Michael_Cheung@smics.com

Chinese Media
Angela Miao
Tel: +86-21-3861-0000 x10088
Email: Angela_Miao@smics.com

SOURCE Semiconductor Manufacturing International Corporation

Website: http://www.smics.com
 
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