All currency figures stated in this report are in US Dollars unless stated otherwise.

SHANGHAI, May 7, 2015 — (PRNewswire) — Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) ("SMIC," the "Company," or "our"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended March 31, 2015.

First Quarter 2015 Highlights

• Revenue was $509.8 million in 1Q15, increased 4.9% QoQ from $485.9 million in 4Q14 and increased 13.0% YoY from $451.1 million in 1Q14.
• Gross margin was 29.4% in 1Q15, the record high since 2004 Q1, compared to 22.5% in 4Q14 and 21.3% in 1Q14.
• Profit for the period attributable to SMIC was $55.5 million in 1Q15, compared to $28.4 million in 4Q14 and $20.3 million in 1Q14.
• China-region revenue grew to a record high of 47.0% of overall revenue in 1Q15.

Second Quarter 2015 Guidance: 

The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below. The Company expects:

• Revenue to increase by 2% to 5% quarter over quarter.
• Gross margin to range from 27% to 29%.
• Non-GAAP operating expenses excluding the effect of employee bonus accrual, government funding and gain from the disposal of living quarters to range from $120 million to $125 million.
• Non-controlling interests of our majority-owned subsidiaries to range from positive $5 million to positive $7 million (losses to be borne by non-controlling interests).

Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director, commented, "Last year we successfully taped out new products for a broad range of applications for 65nm and 40nm, and as a result, in Q1 we had growth and in Q2 we are guiding additional growth.

In the first quarter, our revenue grew to $509.8 million, historically our highest Q1. Gross margin was a ten-year high of 29.4% and we achieved our twelfth consecutive profitable quarter. Revenue from 40nm and 65nm grew more than 25% quarter-over-quarter and more than 58% year-over-year.

To address our technology progress, we continue to work on 28nm product qualification. We are pleased to report that we have already received a purchase order and will begin risk production in Q2.

Revenue from China has continued to be over 40% of our total revenue in the past 8 quarters and accounted for 47% of our total revenue in Q1 2015.  As the largest and most advanced foundry in China, we believe we are well-positioned to benefit from an overall growing IC ecosystem in China."

For the full version of SMIC's announcement, please see: http://www.smics.com/attachment/2015050719020100002198905_en.pdf

SMIC has filed with the U.S. Securities and Exchange Commission its annual report on Form 20-F for the year ended December 31, 2014.  The annual report is available on our website at www.smics.com.  In addition, all SMIC ADR holders have the ability, upon request, to receive a hard copy of our complete audited financials free of charge.

Conference Call / Webcast Announcement

Date: May 8, 2015
Time: 8:30 a.m. Shanghai time
Dial-in numbers and pass code:

The call will be webcast live with audio at http://www.smics.com/eng/investors/ir_presentations.php or http://edge.media-server.com/m/p/qiyindif.

An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.

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. SMIC provides integrated circuit (IC) foundry and technology services at 0.35-micron to 28-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab and a second majority owned 300mm fab under development for advance nodes in Beijing; and 200mm fabs in Tianjin and Shenzhen. SMIC also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong.

For more information, please visit www.smics.com.

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 under "Second Quarter 2015 Guidance", "CapEx Summary" and the statements contained in the quotes of our CEO regarding our expectations for growth and ecosystem growth in China are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project," "target" 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 including, among others, risks associated with the cyclical nature of the semiconductor industry, changes in demand for our products, competition in our markets, our reliance on a small number of customers, orders or judgments from pending litigation, intensive intellectual property lawsuits in semiconductor industry and financial stability in end markets.

Investors should consider the information contained in SMIC's filings with the U.S. Securities and Exchange Commission (SEC), including its annual report on 20-F filed with the SEC on April 28, 2015, especially the consolidated financial statements, and such other documents that SMIC may file with the SEC or The Hong Kong Stock Exchange Limited ("SEHK") from time to time, including current reports on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as may be required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.

About Non-Generally Accepted Accounting Principles ("Non-GAAP") Financial Measures

To supplement SMIC's consolidated financial results presented in accordance with IFRS, SMIC uses in this press release non-GAAP operating expenses which consist of total operating expenses as adjusted to exclude the effect of employee bonus accrual, government funding and gain from the disposal of living quarters. This earnings release also includes second quarter 2015 guidance for non-GAAP operating expenses. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS.

SMIC believes that use of these non-GAAP financial measures facilitates investors' and management's comparisons to SMIC's historical performance. The Group's management regularly uses these non-GAAP financial measures to understand, manage and evaluate the Group's business and make financial and operational decisions.

The accompanying table has more information and reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/smic-reports-2015-first-quarter-results-300079496.html

SOURCE Semiconductor Manufacturing International Corporation

Contact:

Semiconductor Manufacturing International Corporation Web: http://www.smics.com