Saifun And SMIC To Collaborate On 8gb Data Flash Using SMIC's Advanced Process Technology

Saifun And SMIC To Collaborate On 8gb Data Flash Using SMIC's Advanced Process Technology

November 23, 2006

SMIC, a Leading Foundry to Manufacture 8Gb Flash on Advanced Process Based on Saifun Quad NROM Technology and Designs

    NETANYA, Israel, Nov. 23 /Xinhua-PRNewswire/ --
Semiconductor Manufacturing International Corporation,
("SMIC", NYSE: SMI, HKSE: 0981.HK), one of the
leading semiconductor foundries in the world, and Saifun
Semiconductors Ltd. ("Saifun", NYSE: SFUN), a
leading provider of Non-Volatile Memory (NVM) technology,
jointly announced today that they will collaborate on
delivering 8Gb Data flash using SMIC's advanced process
technology.  This unique product, expected to reach the
market in 2008, will be based on the Saifun Quad NROM
technology and designs.  

    (Logo:
http://211.154.41.99:9080/xprn/sa/200611101605.jpg )

    Saifun Quad NROM four-bit-per-cell technology
represents a breakthrough in existing NVM technology by
doubling the storage capacity of conventional memory cells
and providing a simpler architecture that requires fewer
manufacturing steps and reduces manufacturing costs. The
development of 8Gb Data flash on SMIC's advanced process
demonstrates the advantages of Quad NROM in enabling the
most cost-effective Flash manufacturing processes on the
market today.  It will enable SMIC to enter the challenging
Flash market with reliable and high performance products.  

    SMIC aims to provide a comprehensive flash product
offering to tap into the emerging consumer electronics
market in China and throughout the world. SMIC has
delivered its first engineering samples of its advanced 2Gb
NAND flash product based on the Saifun NROM two-bit-per-cell
technology, and it continues to target mass production of
this product by the end of 2006.  

    "We are delighted to further our relationship with
SMIC in bringing the advanced Flash products to the
market," commented Dr. Boaz Eitan, Chairman and CEO of
Saifun, "We believe that the combination of the
innovation and dedication of SMIC with Saifun's unique NROM
technology positions both companies very well to become
significant players in the very lucrative Data
market."

    "We are excited to further expand our partnership
with Saifun into more advanced flash technology. This again
demonstrates our mutual commitment in the advancement of
Flash products," said Dr. Richard Chang, President and
CEO of SMIC, "We believe Saifun's leading edge
technology development, combined with SMIC's reliable and
advanced manufacturing capabilities, will allow us to
further strengthen our position in flash market."

    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 0.35mm to
90nm and finer line technologies. Headquartered in
Shanghai, China, SMIC operates three 200mm fabs in Shanghai
and one in Tianjin, and one 300mm fab in Beijing, the first
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 .

    About Saifun Semiconductors Ltd.

    Saifun is a provider of intellectual property (IP)
solutions for the non-volatile memory (NVM) market. The
company's innovative Saifun NROM(R) technology allows
semiconductor manufacturers to deliver high performance,
reliable products at a lower cost per megabit, with greater
storage capacity, using a single process for all NVM
applications. Saifun licenses its IP to semiconductor
manufacturers who use this technology to develop and
manufacture a variety of stand-alone and embedded NVM
products. These include Flash memory for the
telecommunications, consumer electronic, networking and
automotive markets. Among the companies currently licensing
Saifun NROM technology are Qimonda AG, Macronix
International, NEC Electronics, Semiconductor Manufacturing
International Corporation, Sony Corporation, Spansion, and
Tower Semiconductor.

    Safe Harbor Statements(Under the Private Securities
Litigation Reform Act of 1995)

    This press release 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, including statements
concerning the timing specified products will be available
to customers, the benefits of the collaboration to
customers and the continuing collaboration between SMIC and
Saifun, 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
expressions to identify forward-looking statements,
although not all forward-looking statements contain these
words. These forward-looking statements involve significant
risks, both known and unknown, 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.

    For more information, please contact:

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

     SMIC Hong Kong
     Mei Fung Hoo
     Tel:    [phone]
     Email:  [e-mail]
 
     Marsha Shalvi 
     Saifun Semiconductors Ltd.
     Tel:    [phone]
     Mobile: [phone]
     Email:  [e-mail]

SOURCE  Semiconductor Manufacturing International
Corporation