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Toshiba to Transfer SRAM Process Technology to SMIC

9 January, 2003


Semiconductor Manufacturing International Corporation
Toshiba Corporation

Tokyo -- Toshiba Corporation and Semiconductor Manufacturing International Corporation (SMIC) today jointly announced a reinforcement of their strategic ties through a technology licensing and foundry agreement that will introduce 0.15 micron low power static random access memory (SRAM) technology to SMIC's manufacturing facility in Shanghai, China. The agreement will provide Toshiba with capacity support from SMIC, while SMIC will be able to utilize the new advanced SRAM process technology to support its customers.

Toshiba and SMIC have been partners in SRAM production since a December 2001 agreement on the transfer of 0.21-micron process technology to SMIC. The new agreement builds upon this collaboration and will enable SMIC to fabricate a new generation of low-power SRAM, while ensuring Toshiba has access to a solid SRAM outsourcing base. The primary application for SRAM is in mobile phones, which continue to enjoy positive growth, particularly in China. China's mobile phone market is projected to have a compounded annual growth rate of 25.8% from 2000 to 2005 (Dataquest, WSTS).

Toshiba recognizes the long-term importance and potential of the Chinese market and is promoting moves to reinforce its presence and business in China.

Established in April 2000, SMIC operates a complex of manufacturing facilities in Shanghai that started production of SRAM, DRAM, logic LSI, analog IC, and LCD driver IC in the fourth quarter of 2001. SMIC achieved a production capacity of 30,000 wafers a month by the end of 2002.

About SMIC

SMIC is the first pure-play advanced IC foundry in China to achieve volume production for 8-inch wafers at 0.25-micronm and finer line technologies. Established in April 2000, SMIC is a Cayman Islands company based in Shanghai. The foundry provides customers with a full range of services that include: design services, mask manufacturing, wafer fabrication as well as testing capabilities. For more information, please visit www.smic.com.

About Toshiba

Toshiba Corporation is a leader in information and communications systems, electronic components, consumer products, and power systems. The company's integration of these wide-ranging capabilities assures its position as a leading company in semiconductors, displays and other electronic devices.
Toshiba has 176,000 employees worldwide and annual sales of over US$40 billion. Visit Toshiba's website at http://www.toshiba.co.jp/index.htm.

SMIC

Ms Sarina Huang,
Public Relations
Tel: +86 21 5080 2000 x 10356
Fax: +86 21 5080 2868
E-mail: Sarina_Huang@smics.com

Toshiba

Mr. Makoto Yasuda
Corporate Communications Office
Tel: +81-3-3457-2105
Email: press@toshiba.co.jp


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