Spansion and SMIC Expand Foundry Agreement

SMIC to Manufacture Spansion's 45nm Flash Memory and Expand 65nm Capacity

SUNNYVALE, Calif. and WUHAN, China, May 16, 2011 -- Spansion Inc. (NYSE: CODE), a leading provider of NOR Flash memory, and Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 0981.HK), China's largest and most advanced semiconductor foundry, today announced they will extend their current foundry arrangement to expand 65nm capacity and include the manufacture of Spansion's 45nm Flash memory.

As part of the agreement, Spansion will prepay SMIC $50 million against future procurement of wafers. The prepayment, made in three tranches over the next 12 months, will help SMIC procure equipment for use in Spansion's fabrication processes.

SMIC and Spansion have been working together since 2008, when they began the 65nm MirrorBit® Flash memory process installation. Spansion also manufactures its 65nm products at its flagship manufacturing facility in Austin, Texas.

"Working with SMIC's world-class foundry services and team supports our flexible manufacturing strategy to meet growing customer demand for our differentiated products," said John Kispert, president and CEO of Spansion. "We expect our partnership to become even stronger with the recent joint venture between the government of Wuhan and SMIC."

Spansion will begin transferring its 45nm Flash technology this month, with production expected in the first half of 2012.

"Spansion and SMIC have a collaborative and successful relationship that has been built on our mutual commitment to high quality and reliability," said David N.K. Wang, SMIC's President and CEO. "We are pleased to expand our engagement and look forward to our continued cooperation in China."

About SMIC

Semiconductor Manufacturing International Corporation ("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) foundry and technology services at 0.35-micron to 45/40-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, and a 200mm fab under construction in Shenzhen. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. For more information, please visit www.smics.com.