[TodayIR] SMIC: SMIC and JCET Establish a Joint Venture to Build

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

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 chips
and their demand 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."
 
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