Spansion Signs Foundry Agreement with SMIC to Produce 300mm, 65nm MirrorBit(R) Products

Spansion Signs Foundry Agreement with SMIC to Produce 300mm, 65nm MirrorBit(R) Products

October 24, 2007

Preliminary MOU Signed for SMIC to Manufacture and Sell
MirrorBit Quad Solutions in China
 
    BEIJING and SUNNYVALE, Calif., Oct. 23
/Xinhua-PRNewswire/ -- Spansion Inc. (Nasdaq: SPSN), the
world's largest pure-play provider of Flash memory
solutions, today announced that it has intensified its
focus in the China market by partnering with foundry
leader, Semiconductor Manufacturing International
Corporation ("SMIC", NYSE: SMI and SEHK:
0981.HK). Spansion will transfer its 65nm MirrorBit(R)
technology to SMIC for foundry services on 300mm wafers in
China. SMIC and Spansion have also signed a preliminary
memorandum of understanding which would allow SMIC to enter
selected segments of the Flash memory market with a license
to manufacture and sell 90nm and 65nm and potentially
future Spansion MirrorBit(R) Quad products for the China
content delivery market.

     Spansion has been investing in China for over 10 years
and is now a leading Flash memory provider to the top
consumer electronics and wireless OEMs in the region. The
investment started with the establishment by AMD,
Spansion's former parent company, of the Suzhou final
manufacturing facility ¨C now one of the world's largest
producers of memory Multi-chip Packages (MCPs). Since then,
Spansion has added local design centers in Suzhou and
Beijing, and sales and marketing offices in Beijing,
Shanghai and Shenzhen. Through the foundry agreement with
SMIC, Spansion will have wafer manufacturing capabilities
in China.

     "By partnering with SMIC, a leading foundry in
China, we can better serve our customers, with products
made in China for the China market," said Bertrand
Cambou, president and CEO of Spansion Inc. "As a
result of our team's success, we have the opportunity to
take our business to the next level and expand
opportunities in this exploding region."   

    As the market leader in China, SMIC provides a complete
integrated circuit foundry solution to help its customers
fulfill their China Strategy. SMIC has diversified its
memory portfolio to include NAND Flash, NOR Flash, and
Specialty DRAM as part of its growth strategy to enter
potential market segments. SMIC has also announced
development of 90nm 2Gb NAND Flash and 2Gb-TSOP products
based on Saifun 2-bit-per-cell as well as the Quad NROM
four-bit-per-cell technology, scheduled to enter commercial
production as early as the fourth quarter, 2007. 

    "As Spansion has made strategic plans for the
China market, SMIC has made great strides anticipating the
growing Flash memory market. Our partnership with the NOR
Flash memory technology leader fortifies these strategic
synergies," said Dr. Richard Chang, president and CEO
of SMIC. "With the booming China consumer electronics
market comes the opportunity to create and nurture the
growth of various Flash memory services and markets. We
look forward to collaborating with Spansion to manufacture
its leading-edge MirrorBit technology and develop
Flash-based content delivery applications."
 
    Spansion in China

    Spansion has more than 1,300 employees in Greater China
who continue to build momentum with the top OEMs, as
demonstrated by the awards Spansion has received. For the
third consecutive year, Lenovo awarded Spansion Best
Supplier for 2006 and Inventec, a leading ODM/OEM awarded
Spansion Best Partner earlier this year. Spansion's other
leading partners in the Greater China region include ARCA
Technology Corporation and MediaTek, Inc., one of the
world's top ten fabless semiconductor companies for
wireless communications and digital media solutions.
Spansion has a final manufacturing facility in Suzhou, one
of the world's largest memory producers of Multi-chip
Packages (MCPs), design centers in Suzhou and Beijing and
sales and marketing offices in Beijing, Shanghai and
Shenzhen. 

    About Spansion 

    Spansion is a leading Flash memory solutions provider,
dedicated to enabling, storing and protecting digital
content in wireless, automotive, networking and consumer
electronics applications. Spansion, previously a joint
venture of AMD and Fujitsu, is the largest company in the
world dedicated exclusively to designing, developing,
manufacturing, marketing and selling Flash memory
solutions. For more information, visit
http://www.spansion.com.
 
    About SMIC

    Semiconductor Manufacturing International Corporation
("SMIC"; NYSE: SMI; SEHK: 0981.HK) is one of the
leading semiconductor foundries in the world and the
largest and most advanced foundry in Mainland China,
providing integrated circuit (IC) manufacturing service at
0.35um to 90nm and finer line technologies. Headquartered
in Shanghai, China, SMIC has a 300mm wafer fabrication
facility (fab) under pilot production 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 an
in-house assembly and testing facility in Chengdu. 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 200mm
wafer fab in Chengdu owned by Cension Semiconductor
Manufacturing Corporation and a 300mm wafer fab under
construction in Wuhan owned by Wuhan Xinxin Semiconductor
Manufacturing Corporation. For more information, please
visit http://www.smics.com
 
    Spansion(R), the Spansion logo, MirrorBit(R),
MirrorBit(R) Eclipse(TM), ORNAND(TM), HD-SIM(TM) and
combinations thereof, are trademarks of Spansion LLC in the
U.S. and other countries. Other names used are for
informational purposes only and may be trademarks of their
respective owners. 
 
    Safe Harbor Statements for SMIC
    (Under the U.S. Private Securities Litigation Reform
Act of 1995)

    Information provided in this press release may contain
statements relating to current expectations, estimates,
forecasts and projections about future events that are
"forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally relate to the
company's plans, objectives and expectations for future
operations and are based upon management's current
estimates and projections of future results or trends.
Actual future results may differ materially from those
projected as a result of certain risks and uncertainties.
For a discussion of such risks and uncertainties, see
"Risk Factors" in the company's Annual Report on
Form 20-F filed on June 29, 2007 with the U.S. Securities
and Exchange Commission. These forward-looking statements
are made only as of the date hereof, and we undertake no
obligation to update or revise the forward-looking
statements, whether as a result of new information, future
events or otherwise.


    For more information, please contact:

     Joy Wu 
     Spansion China
     Phone: [phone]

     Michele Landry
     Spansion Inc
     Phone: [phone]

     SMIC
     Reiko Chang
     Corporate Relations
     Phone: [phone] ext. 10544
     Email: [e-mail]