On 4 December 2020, the Company noticed that the Company was added to the list of Chinese military companies by the United States Department of Defense. After the Company was included in the list of Chinese military companies, United States persons will be restricted in their dealings in the Company’s traded securities, or any securities that are derivative underlying such securities: all United States persons will not be allowed to purchase the Company’s securities for 60 days commencing on 4 December 2020, Beijing time. After 365 days therefrom, all United States persons will not be allowed to deal in the Company’s securities. For the specific regulatory restrictions, please refer to the Executive Order issued by the President of the United States of America dated 12 November 2020.

There is no major impact on the Company’s operation after being added to the Chinese military companies list. The Company reiterates that it is an international enterprise operating independently with stakeholders such as investors and customers all over the world. The Company has been fully compliant with all rules and laws, operating in compliance with the relevant laws and regulations of jurisdictions where it performs its businesses. The Company’s services and product are all for civilian and commercial end-uses and are not involved in any military application. The Company strongly opposes the decision of United States Department of Defense, which reflects a fundamental misunderstanding by the United States Department of Defense regarding the end-uses of the Company’s business and technology. The Company will continue to carry out proactive communication with the relevant United States government departments.

By order of the Board

Semiconductor Manufacturing International Corporation
4 December 2020