Semiconductor Manufacturing International Corporation (00981.HK) (SMIC) said that it has entered into an agreement with Elpida Memory, Inc. to settle all pending arbitration claims and counterclaims relating to the parties' Amended and Restated 200mm Wafer Products Business Agreement dated 30 August 2007.

Under the terms of the settlement agreement, SMIC will pay Elpida US$21 million. SMIC had previously taken a reserve of US$10 million, and with this settlement will incur further expense of US$11 million.