Chipnuts and SMIC to Jointly Offer C626 Multimedia Chip For Mobile Phones

Chipnuts and SMIC to Jointly Offer C626 Multimedia Chip For Mobile Phones

May 16, 2006

    SHANGHAI, China, May 16 /Xinhua-PRNewswire/ -- Chipnuts
Technology (Shanghai), Inc. ("Chipnuts") and
Semiconductor Manufacturing International Corporation
("SMIC", NYSE: SMI and HKSE: 0981.HK), one of the
leading foundries in the world, jointly announced today that
Chipnuts' C626 chip, a multimedia chip for mobile phones,
has successfully entered commercial production at SMIC.

    Manufactured using SMIC's 0.18um mixed-signal process
technology, C626 is the newest addition to Chipnuts' line
of mobile multimedia System-on-Chip (SoC) co-processors. 
The C626 chip is optimized for low power consumption and
high performance, providing key features such as MPEG-4
decoder and analog codec for video and audio playback and
recording.  The chip also included Chipnuts' proprietary
and unique MINI-MTVTM feature enabling true mobile Karaoke.
 In addition, the C626 chip can play mp3 files in the
background while simultaneously supporting capture and
review of pictures on mobile phones.

    SMIC provided customized Device Under Pad I/O design
services for the C626 chip, which allowed for a small die
size while increasing system design flexibility.

    "Chipnuts has had a long-standing collaboration
with SMIC dating back to Chipnuts' establishment.  During
pilot production, we were highly impressed with SMIC's
comprehensive support and services," said Mr. John Yu,
Chief Operating Officer of Chipnuts, "As our business
continues to expand, our collaboration with SMIC will also
continue to strengthen."

    "SMIC is honored to provide foundry services to
Chipnuts, whose rapid development exemplifies the overall
growth of China's fabless design industry.  SMIC's
manufacturing expertise coupled with Chipnuts' design
successes will further elevate the mobile phone
applications chip market," said Mr. Ning Hsieh,
vice-president of marketing and sales at SMIC.

    At a press conference held today, Chipnuts and SMIC
signed a Memorandum of Understanding that serves to
strengthen the companies' business relationship going
forward.

    About Chipnuts 

    Chipnuts Technology (Shanghai), Inc., formed in
September, 2003, is a leading provider of low-power, best
price-performance mobile multimedia System-on-Chip (SoC)
co-processors and complete system solutions.  Headquartered
in Shanghai, China, Chipnuts also has sales and
field-support offices in Beijing and Shenzhen.  Since its
establishment, Chipnuts has been developing rapidly,
earning positive reviews of its flagship single-chip
multimedia co-processors.  On February 14th, 2006, Chipnuts
received the ISO19001: 2000 quality assurance certificate. 
For more information, please visit http://www.chipnuts.com
.

    About SMIC Semiconductor Manufacturing International
Corporation

    SMIC Semiconductor Manufacturing International
Corporation ("SMIC", NYSE: SMI and SEHK:
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
http://www.smics.com .

    Safe Harbor Statements
     (Under the U.S. Private Securities Litigation Reform
Act of 1995)
  
    Certain statements contained in this press release,
such as statements regarding the collaboration and business
relationship between SMIC and Chipnuts, may be viewed as
"forward-looking statements" within the meaning
of Section 27A of the U.S. Securities Act of 1933, as
amended, and Section 21E of the U.S. Securities Exchange
Act of 1934, as amended.  Such forward-looking statements
involve known and unknown risks, uncertainties and other
factors (including without limitation the results of future
partnership between SMIC and Chipnuts), which may cause
actual events, and/or the actual performance, financial
condition or results of operations of SMIC to be materially
different from any future performance, financial condition
or results of operations implied by such forward-looking
statements.  Further information regarding these risks,
uncertainties and other factors is included in the
Company's annual report on Form 20-F filed with the U.S.
Securities and Exchange Commission (the "SEC") on
June 28, 2005 and such other documents that SMIC may file
with the SEC or The Stock Exchange of Hong Kong Limited
from time to time.

    For more information, please contact:

    SMIC Shanghai
     Reiko Chang
     Tel:   [phone] x10544
     Email: [e-mail]

    SMIC Hong Kong
     Calvin Lau 
     Tel:   [phone]
     Email: [e-mail]

     Mei Fung Hoo 
     Tel:   [phone]
     Email: [e-mail]

    Chipnuts
     Maggie Wang
     Public Relations Department
     Tel:   [phone]
     Email: [e-mail]

SOURCE  SMIC Semiconductor Manufacturing International
Corporation