SHANGHAI, Dec. 8, 2011 /PRNewswire-Asia/ --
This announcement is made pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Semiconductor Manufacturing International Corporation (the " Company" or " SMIC") (NYSE: SMI; SEHK: 981) today announces that on 8 December, 2011 it entered into an agreement (the " Settlement Agreement") with Elpida Memory, Inc. (" Elpida") to settle all pending arbitration claims and counterclaims relating to the parties' Amended and Restated 200mm Wafer Products Business Agreement dated 30 August, 2007.
Under the terms of the Settlement Agreement, the Company will pay Elpida US$21 million. The Company had previously taken a reserve of approximately US$10 million, and with this settlement will incur further expense of approximately US$11 million. The Company confirms that it does not consider that the Settlement Agreement will have any material adverse effect on the financial position of the Company and its subsidiaries as a whole.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 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, Japan, and Taiwan, 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 Safe Harbor Statements (Under the Private Securities Litigation Reform Act of 1995)