SMIC Completes First 45-Nanometer High Performance Process

Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI and SEHK: 0981.HK) today announced the successful completion of its first 45-nanometer high performance (GP, generic process with high performance) yield lot.

SMIC's high-speed, high performance 45nm GP technology integrates a silicon germanium stress module into the design, allowing the device to run faster, making it ideal for a number of applications, including system-on-chip, graphics and network processors, telecommunications and wireless consumer products, and serves as a technology platform for the fast growing China market.

The 45nm GP technology bookends with SMIC's silicon success on its 45nm low power (LP) technology, which is suitable for mobile devices that put a premium on low power consumption. SMIC signed an agreement with International Business Machines (IBM) to license its low-power and high-performance bulk CMOS technologies in December 2007. The GP technology transfer was completed in March 2009.

"I'm delighted with the progress of SMIC's 45nm project team, which continues to meet rigorous deadlines, and we appreciate the excellent support from IBM throughout this progress," said Dr. Robert Tsu, SMIC's 45nm project leader and Associate Vice President of Logic Technology. "Integrating the silicon germanium process and achieving a well-yielded test chip from the very first yield lot is a significant technical accomplishment, and these accomplishments allow SMIC to provide a highly manufacturable technology to our customers."

SMIC's 45nm GP technology is supported by a proven design-in SPICE model and in-house design IP capability that enables customers to begin prototype product design and plan for early time-to-market. In June, SMIC announced the adoption of new SPICE model software for the design and verification of 45nm IP blocks, I/O circuitry, and standard cell characterization flows.

As the company's 65nm low-power technology development cycle comes to a successful close, with a recently completed IP portfolio, multiple customer product qualification, and a ramping up of production, efforts have focused on 45nm. The readiness of SMIC's 45nm LP and GP technologies for design-in allows customers to enter a premium-value market.

"We are very excited and encouraged by the completion of our first 45nm high performance yield lot, another important signpost in SMIC's strategic plan," said Dr. Richard Chang, SMIC's President and CEO. "It verifies the IBM- licensed technology, validates our strategic decision to invest in advanced logic technologies, and enhances SMIC's position as the advanced logic technology leader in China. This 45nm GP process is a proven, robust, high yielding, and high performance technology that we anticipate can not only deliver better performance, reliability, and cost to our valued customers, but also help SMIC become even more competitive in China and worldwide."

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