Tokyo--Toshiba Corporation and Semiconductor Manufacturing International Corporation (SMIC) today jointly announce technology licensing and foundry agreements which include transferring of low power static random access memory (SRAM) technology to SMIC's manufacturing facility in Shanghai, China.

Low power SRAMs are primarily used in mobile phones and demand in China is expected to grow as the market continues to expand. These partnership arrangements will provide Toshiba with a solid China outsourcing base, which can support a diverse product range. The move is also expected to open the way to additional potential technology and outsourcing partnership in other product areas as well. Toshiba expects that this partnership relationship will greatly reinforce its semiconductor business in China. To enhance and solidify the partnership, Toshiba will also participate in SMIC equity investment as a part of the fee for the transfer of the SRAM know-how.

Established in April. 2000, SMIC is now completing a complex of manufacturing facilities in Shanghai that will start production of SRAM, logic LSI, analog IC, flash memories and LCD driver IC in the first quarter of 2002. SMIC is targeting to have a production capacity of 30K/month by the end of 2002.

Outline of SMIC