SMIC Tianjin Secures Financing for Expansion

SMIC Tianjin Secures Financing for Expansion

May 31, 2006

     TIANJIN, China, May 31 /Xinhua_PRNewswire/ --
Semiconductor Manufacturing International Corporation
(NYSE: SMI; SEHK: 0981) ("SMIC" or the
"Company"), one of the leading semiconductor
foundries in the world, today announced that its
wholly-owned subsidiary, Semiconductor Manufacturing
International (Tianjin) Corporation ("SMIC
Tianjin"), has entered into a US$300 million 5-year
loan facility with a group of banks located in the People's
Republic of China (the "Loan").  The proceeds of
the Loan will help to expand the capacity at SMIC's 200-mm
fab located in Tianjin.  SMIC will guarantee SMIC Tianjin's
obligations under the Loan.

    China Construction Bank led the arrangement of the Loan
with other participants, which include China MingSheng Bank,
China Development Bank, Industrial and Commercial Bank Of
China, Agricultural Bank of China, Bank of China, China
Merchants Bank, China BoHai Bank, Bank of Communications,
and Bangkok Bank.
Dr. Richard R. Chang, Chief Executive Officer of SMIC,
said, "We are pleased that with strong support from
our banking partners, the Tianjin loan is significantly
oversubscribed - exceeding our target loan amount by US$150
million.  We plan to use the loan proceeds and internally
generated cash flow to fund the Tianjin fab expansion.

    About SMIC

    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, providing
integrated circuit (IC) manufacturing service at 0.35um to
90nm and finer line technologies.  Headquartered in
Shanghai, China, SMIC operates three 8-inch fabs in
Shanghai and one in Tianjin, and one 12-inch fab in
Beijing, the only one of its kind in Mainland China.  SMIC
has customer service and marketing offices in the U.S.,
Italy, and Japan as well as a representative office in Hong
Kong.  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 SMIC Tianjin Secures
Financing for Expansion, 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
collaboration between SMIC and ARM), 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 ¨C Shanghai
     Reiko Chang
     SMIC
     Tel:   [phone] x10544
     Email: [e-mail]

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

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

SOURCE  Semiconductor Manufacturing International
Corporation