Market introduction of electronic components-partinchina.com

Market introduction of electronic components-partinchina.com

2010-partinchina.com

Third Quarter 2010 Highlights:

Revenue up by 7.6% to $410.1 million in 3Q10 from $381.1 million in 2Q10 and up by 26.8% compared to 3Q09.

Gross margins improved to 24.5% in 3Q10 compared to 15.6% in 2Q10 primarily due to an increase in fab utilization and lower depreciation

costs.

Net cash flow from operations decreased to $125.2 million in 3Q10 from $167.5 million in 2Q10.

Gain attributable to holders of ordinary shares was US$30.4 million in 3Q10, compared to gain of US$96.0 million in 2Q10.

Diluted EPS was $0.06 per ADS.

Fourth Quarter 2010 Guidance:

The following statements are forward-looking statements which are based on current expectation and which involve risks and

uncertainties, some of which are set forth under "Safe Harbor Statements" below.

Revenue is expected to be flat quarter-on-quarter.

Gross margin is expected to range from 21% to 23%.

Operating expenses excluding foreign exchange differences are expected to range from $80 million to $84 million.

2010 annual capital expenditures are expected to range from $750 million to $800 million.

Commenting on the quarterly results, Dr. David NK Wang, President and Chief Executive Officer of SMIC remarked, "I am pleased to report

that SMIC is profitable this quarter on both operational and net income levels, due to a good overall market environment and SMIC's

internal improvements. With only 3% capacity increase year-over-year, we were able to grow our revenue 27% and our gross margin from

0.8% in Q3 last year to 24.5% this year.

"Revenue contribution from 65nm doubled compared to the second quarter. Our 40nm low-leakage technology process was frozen on schedule

with a leading customer's endorsement. We are accelerating our other 45nm programs, targeting revenue in the second half of 2011."