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Qualcomm and SMIC Form Strategic Agreement for Turnkey Semiconductor Fabrication and Test Services

Commitment to Chinese Industry Helps Shorten Time to Market with More Cost-Effective Process
Jul 26, 2006
SAN DIEGO

Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced a strategic agreement with Semiconductor Manufacturing International Corporation (SMIC) (NYSE: SMI; SEHK: 981), one of the world's leading semiconductor foundries. SMIC will provide integrated circuit (IC) manufacturing services to Qualcomm using a specialized BiCMOS process technology at its Tianjin, China facility. This agreement will combine SMIC's wafer fabrication capabilities and subcontractor infrastructure with Qualcomm's leadership in 3G wireless technologies, with a focus on power management ICs.
“We are proud to support Qualcomm with our proven business model and established supply chain network,” said Richard Chang, president and CEO of SMIC. “This agreement demonstrates the success of SMIC's continued efforts to offer turnkey solutions to our valued customers. We look forward to a productive relationship with Qualcomm.”
“This strategic agreement with SMIC will allow Qualcomm to leverage the foundry's operation and management expertise in mixed signal technology manufacturing and supply chain management to serve our customers in China and around the world,” said Dr. Sanjay K. Jha, president of Qualcomm CDMA Technologies. “Not only is this agreement in line with our continued commitment to China, but it also will allow us to further streamline our operations, shorten the development cycle and focus on our core technology offerings.”
Qualcomm is committed to the Chinese wireless industry, and in June 2003, the Company announced plans to invest up to US$100 million in early- to mid-stage Chinese companies engaged in the development and commercialization of CDMA-based products, applications and services. In March of this year, the Company announced the joint founding of TechFaith Software China Limited to focus on the development of application software for mobile devices.
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 manufacturing service at 0.35um to 90nm and finer line technologies. Headquartered in Shanghai, China, SMIC operates three 8-inch fabs in Shanghai and one in Tianjin and one 12-inch fab in Beijing - the only one of its kind in Mainland China. SMIC has customer service and marketing offices in the U.S., Italy and Japan, as well as a representative office in Hong Kong. For additional information, please visit http://www.smics.com.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2006 FORTUNE 500® company traded on The NASDAQ Stock Market® under the ticker symbol QCOM.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 25, 2005, and most recent Form 10-Q.
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