Document:

<PAGE>

                                                                    Exhibit 10.1

                 [Translation from Original Document in Chinese]

                        Land Use Rights Transfer Contract

Party A:   Zhangjiang Technology Park Development Co.

Party B:   Semiconductor Manufacturing International (Shanghai) Corporation

                               ____ 2002, Shanghai

<PAGE>

                        Land Use Rights Transfer Contract

                          Chapter 1 General Provisions

     Article 1 In accordance with the Law of the People's Republic of China on
the Administration of Urban Real Estate, the Provisional Regulations of the
People's Republic of China Concerning the Grant and Transfer of the Right to Use
State Land in Urban Areas, the Measures of Shanghai Municipality on the Transfer
of Real Estate and other regulations and by reference to the prevailing
practices of various development zones in the State and Shanghai Municipality,
Zhangjiang Technology Park Development Co. (hereinafter referred to as "Party
A") and Semiconductor Manufacturing International (Shanghai) Corporation
(hereinafter referred to as "Party B"), following friendly consultations, agree
to enter into the Land Use Rights Transfer Contract (hereinafter referred to as
the "Contract").

     Article 2 Party A, the lawful owner of the land use rights of the lots
referred to in this Contract, agrees to transfer the land use rights of such
lots to Party B in accordance with the provisions of the relevant laws and
regulations of the People's Republic of China and the covenants in this
Contract. Party B agrees to accept transfer of the land use rights of such lots
in accordance with the provisions of the relevant laws and regulations of the
People's Republic of China and the covenants in this Contract and agrees to pay
the transfer price to Party A in accordance with the covenants in this Contract.

                          Chapter 2 Contract Documents

     Article 3 The following documents are inseparable parts of this Contract.

         1.  The boundary location diagram for the lots
             subject to transfer provided by Party A;               (Appendix 1)

         2.  Copies of Shanghai Municipality Certificates
             of Real Property Rights provided by Party A;           (Appendix 2)

         3.  Location Map for the lots subject to transfer
             provided by Party A. Chapter 3 Legal Position of
             the Parties                                            (Appendix 3)

     Article 4 Party A is an economic entity, whose establishment was approved
by the State with Chinese legal person status, to be responsible for the land
development and operation of Zhangjiang High-Tech Park.

     Article 5 Party B is an economic entity, whose establishment was approved
by the State, with Chinese legal person status, mainly engaging in production of
integrated circuit chips and other business.

                                       1

<PAGE>

         Chapter 4 Location and Area of the Lots and Nature of the Land

     Article 6 Party A shall transfer to Party B the land use rights of the
industrial and residential lots within Zhangjiang High-Tech Park (hereinafter
referred to as the "Lots") as the land for the construction project. The area of
the forgoing industrial lot is 350,000 square meters approximately and the area
of the residential lot is 280,000 square meters approximately, totaling 630,000
square meters. Details of the shape, location and the four boundaries are set
forth in Appendices 1 and 3. The exact areas shall be based on the areas as
surveyed and measured on site by the land administration authorities.

     Article 7 The nature of planning for the Lots is for industrial and
residential purposes.

                      Chapter 5 Term of the Land Use Rights

     Article 8 The term of the land use right for the industrial lot referred to
in Article 6 of this Contract shall be 50 years, while the land use right of the
residential lot shall be 70 years, both calculated from the date of delivery of
possession of the land. At the expiry of the terms of the land use rights, Party
B can apply for renewal of the terms in accordance with the provisions of the
laws and regulations

     Article 9 During the valid term when Party A has obtained the land use
rights, the lawful interests of Party B shall be protected by the laws of the
State. Under special circumstances, when the State requisitions the land use
rights as required for social or public interests in accordance with the
statutory procedures, Party B shall have the right to receive reasonable
compensation for its loss with respect to the use of the Lots in accordance with
the stipulations of the Government.

           Chapter 6 Land Use Rights Transfer Fees and Payment Method

     Article 10 The land use right transfer fee for the industrial lot referred
to in Article 6 of this Contract shall be RMB80/square meter, totaling
RMB28,000,000, while the land use right transfer fee for the residential lot
shall be RMB 280/square meters, totaling 78,400,000, and the total amount of the
land use right transfer fees for the forgoing lots shall be RMB106,400,000 (or
US$12,865,800). Party B undertakes to pay the forgoing land use right transfer
fees into the account designated by Party A before February 22, 2002.

     Article 11 The calculation of the total amount of the land use right
transfer fees referred to in Article 10 of this Contract shall be based on the
actual usable areas as surveyed and measured by the land administration
authorities and the product of the price per square meter referred to in Article
10 of this Contract, and any over-payment shall be returned and any shortfall
shall be made up.

                  Chapter 7 Delivery of Possession of the Land

     Article 12 Party A warrants that no third party owns the mortgage right,
use right and the right to be paid in priority for the Lots. Party A warrants
that it has the right to execute this Contract and that the transfer of the
subject matter under this Contract satisfies the statutory

                                       2

<PAGE>

transfer conditions. Party A shall provide Party B with the relevant
certificates with respect to the land use rights of the Lots as appendixes to
this Contract. Party A warrants that the payment method stipulated in Article 10
of this Contract will not have adverse effects on the Shanghai Municipality
Certificate of Real Property Rights in respect of the lots referred to in
Article 6 of this Contract jointly applied for by the Parties, as well as the
rights of Party A under this Contract.

     Article 13 Party A shall, simultaneously with the completion of the
procedures for change of the land use rights for the lots to be transferred in
accordance with Article 12 of this Contract, complete the delivery of possession
of the lots referred to in Article 6 of this Contract. At the delivery of
possession of the land, the representatives of the Parties shall sign and seal
the Sheet of Delivery of Possession of the Land to evidence the completion of
the delivery of possession of the land.

                     Chapter 8 Other Rights and Obligations

     Article 14 During the valid term in which Party B has procured the transfer
of the land use rights for the Lots, Party B shall have the right to the dispose
of the land use right together with the structures on the land in accordance
with the law, including the development and operation, pre-sale, transfer, lease
and mortgage of the structures, in each case in accordance with the provisions
of relevant laws, rules and regulations. In such event, Party B shall deliver
the relevant legal documents to Party A for filing. Any successor or assignee of
the land use rights resulting from the occurrence of such event shall assume the
rights and obligations of Party B hereunder. Any project in which the successor
or assignee invests must comply with the industry guidelines and the overall
planning for Zhangjiang High-Tech Park. Party A shall have the right to pursue a
claim against Party B for any breach of this Article by a successor or assignee
holding Party A liable.

     Article 15 All structures and facilities constructed by Party B on the Lots
involving construction, fire prevention, environmental protection and greenery
shall be planned and designed by Party B in accordance with the Terms of the Use
of Land for SMIC Project in Zhangjiang High-Tech Park and shall be implemented
subject to the approval of relevant Government authorities.

     Article 16 Party A shall be responsible for construction and maintenance in
relation to public health, public greenery and the roads outside the lots
referred to in Article 6 of this Contract. The obligations to be assumed by
Party B shall be separately agreed upon by the Parties.

     Article 17 Construction by Party B on the Lots shall not cause damage to
the roads surrounding the Lots and the public utilities on or underneath the
Lots. In case construction by Party B causes damage to such facilities, Party B
shall be responsible for restoration, bear all cost and compensate for the loss
arising therefrom.

     Party B shall not, without authorization, excavate or occupy any land
outside the site specified in Article 6 of this Contract. Temporary use of any
land outside the site specified in

                                       3

<PAGE>

Article 6 of this Contract shall be subject to the consent of the competent
Government authorities or the relevant land user.

         Article 18 Party B shall allow various kinds of pipes and lines
required to be laid for public utilities as approved by the Government to pass
through the Lots and shall facilitate construction by Party A, provided that
Party A shall consult with Party B upon the details of the proposal for
construction.

                  Chapter 9 Renewal and Termination of Contract

         Article 19 If Party B continues to own the land use rights for the lots
specified in Article 6 of this Contract at the expiration of the term during
which such lots have been transferred to Party B, Party B may apply for the
renewal of such term. Application for renewal shall be made in accordance with
relevant regulations of the State.

         Article 20 If, at the expiration of the term during which the land use
rights have been transferred, such term is not renewed, Party B shall return the
Lots in good state to the State and the structures on and attachments to the
Lots shall be disposed of in accordance with relevant regulations of the State,
and this Contract shall be terminated automatically.

                   Chapter 10 Liability for Breach of Contract

         Article 21 Any of the following circumstances shall constitute a breach
of contract on the part of Party A:

         (1) Failure to deliver the possession of the land at the time specified
             herein.

         (2) Any representation, warranty or undertaking given by it herein is
             untrue or not complied with.

         (3) Breach of any other provision hereof.

         Article 22 Occurrence of any of the following events shall constitute a
breach of contract on the part of Party B:

         (1) Failure to pay the use right transfer fees in accordance with
             Articles 10 and 11.

         (2) Use and disposal of the Lots are in contravention of relevant laws
             and regulations governing the transfer of land use rights and the
             relevant provisions hereof.

         (3) Breach of any other provision hereof, or any representation,
             warranty or undertaking given by it herein is untrue or not
             complied with.

         Article 23 The defaulting Party shall pay the other Party liquidated
damages, calculated on a daily basis as follows:

         (1) The daily liquidated damages shall be 0.05% of the amount under
             this Contract.

                                       4

<PAGE>

         (2) The number of days of breach shall equal the number of calendar
             days in the period from the day on which the breach occurs to the
             day on which the breach is rectified.

         (3) The amount of liquidated damages shall equal the daily liquidated
             damages x the number of days of breach.

         Article 24 If, after a breach occurs, the non-defaulting Party requests
continuation of performance of this Contract, the defaulting Party shall
continue to perform this Contract, regardless of whether the liquidated damages
have actually been paid.

         Article 25 If, after the completion of construction of the
infrastructure on the Lots specified in Article 6 of this Contract, the number
of days of breach during the commencement of construction by Party B exceeds two
years, the right of Party B to use the Lots shall be forfeited by the State.

                           Chapter 11 Other Provisions

         Article 26 A Party who, as a result of an event of force majeure, is
unable to perform this Contract in accordance with the terms agreed upon herein
shall forthwith give notice thereof to the other Party and shall, within 15
days, provide details of such event, reasons for its inability to so perform
this Contract or its need to defer such performance and relevant documentary
evidence. The Parties may, on the basis of the extent to which the performance
hereof is affected by the event of force majeure, negotiate to decide whether
this Contract should be terminated or its performance should be waived in part
or deferred.

         Article 27 The Parties may reach an agreement in writing through
consultation on matters not covered herein, which agreement in writing shall
form part of this Contract and have the same legal effect as this Contract.

         Subject to the agreement reached by the Parties through consultation,
this Contract may be amended, provided that the Parties shall perform this
Contract in accordance with its existing terms before the amended document comes
into effect.

         Article 28 This Contract shall become effective upon execution by the
legal representatives or authorized representatives of the Parties.

         Article 29 Any dispute arising in the course of the performance of this
Contract shall be settled by the Parties through consultation. If such dispute
cannot be resolved through consultation, it may be referred to the Shanghai
Arbitration Commission whose rules shall be deemed to have been incorporated
herein.

         Article 30 No Party may, without the prior written consent of the other
Party, disclose all or part of the terms hereof to any third party. Upon
discovery after investigation, the disclosing Party shall be liable for damages
accordingly.

                                       5

<PAGE>

     Article 31 The main body of this Contract is written in the Chinese
language and executed in six copies. Each Party shall hold two copies and the
remaining two copies shall be delivered to the relevant Government authorizes.

     The appendices to this Contract set forth in Chapter 2 shall be in six
copies.

     Article 32 The published and publicly obtainable PRC laws shall be
applicable to the formation, validity, interpretation and performance of this
Contract and the settlement of disputes hereunder. In case the forgoing laws do
not provides for a special issue relating to this Contract, customary
international commercial practices shall be used.

     Article 33 Any notices issued by a Party to the another Party under this
Contract shall be in writing and delivered in the following manner:

     (1)  Notices are to be sent to the person to be notified by prepaid
          registered post, with receipt of registered post

     (2)  Faxes are to be sent to the person to be notified

     (3)  Cable, telex or other forms in which written record of the contents of
          the notice can be provided

     With respect to a notice sent by registered post, the date of receipt
indicated on the receipt of registered post shall be the valid date. With
respect to the notice sent by facsimile, the receiving date indicated on the
record of the fax machine of the recipient shall be valid, except for notices
received after five o'clock in the afternoon at the local time on a working day
of the recipient as recorded on the fax machine. Under such circumstances, the
notice shall be deemed to have been received at nine o'clock in the morning at
the local time on the following working day of the recipient. With respect to
other notices issued in other forms, such notices shall become valid when they
are received by the recipient.

     For this purpose, please use the following correspondence address:

     Party A:  Address:     No. 200, Long Dong Avenue, Pudong New Area, Shanghai
               Postcode:    201203
               Telephone:   50803686
               Facsimile:   50800492
               Contact:     Dai Haibo

     Party B:  Address:     No. 18, Zhangjiang Road, Pudong New Area, Shanghai
               Postcode:    201203
               Telephone:   50802000
               Facsimile:   50803070
               Contact:     Zhang Rujing

                                       6

<PAGE>

[No Text below]

                                       7

<PAGE>

[This is signature page]

<TABLE>
<S>                                                 <C>
Party A:                                            Party B:
Zhangjiang Technology Park Development Co.          Semiconductor Manufacturing International
[Seal affixed]                                      (Shanghai) Corporation [Seal affixed]

Representative: [Signature affixed]                 Representative: [Signature affixed]
</TABLE>

                       Date of Execution: February 4, 2002

                                      8

<PAGE>

                                   Appendix 1

            Boundary Location Diagram for Residential Lot, Lot No. 4

        Semiconductor Manufacturing International (Shanghai) Corporation

                                  [MAP DIAGRAM]

                                 Appendix 1 - i

<PAGE>
                                   Appendix 1

                  Boundary Location Diagram for Residential Lot
        Semiconductor Manufacturing International (Shanghai) Corporation

                                  [MAP DIAGRAM]

                                 Appendix 1 - ii

<PAGE>

                                   Appendix 1

                                  [MAP DIAGRAM]

                                Appendix 1 - iii

<PAGE>

                                   Appendix 2

                              Shanghai Municipality
                       Certificate of Real Property Rights

                     Limited to Buildings for Domestic Sale

                         Hufengdipuzi (2001) No. 046827

                                   2001034516

                           Date of Issue: May 8, 2001

                                 Appendix 2 - i

<PAGE>

     In accordance with the Law of the People's Republic of China on Land
Management, the Law of the People's Republic of China on the Administration of
Urban Real Estate, the Regulations of Shanghai Municipality on Real Estate
Registration and other relevant laws and regulations and for the purpose of
protecting the lawful interests of the land use right owners and building
owners, registration is permitted and this Certificate is issued after
investigation and verification with respect to the land, buildings and other
attachments of the rights owner under its application for registration.

     This Certificate is evidence of the real property rights of the land whose
use right is granted or transferred.

                                              Buildings and Land Resources

                                              Administration Bureau of Shanghai

                                              Municipality [Seal affixed]

                                 Appendix 2 - ii

<PAGE>

<TABLE>
<S>                             <C>
------------------------------------------------------------------------------------------------------------------

Rights Owner                   Zhangjiang Technology Park Development Co.
------------------------------------------------------------------------------------------------------------------

Identity No.                   3100001004128
------------------------------------------------------------------------------------------------------------------

Location of Real Property      Residential Area, Phase II, Zhangjiang Hi-Tech Park
------------------------------------------------------------------------------------------------------------------
Condition of
Co-ownership
------------------------------------------------------------------------------------------------------------------

                               Nature of Ownership          State-owned       Purpose             Residential
------------------------------------------------------------------------------------------------------------------

                               Land No.                     Residential Area, Phase II, Zhangjiang Hi-Tech Park,
                                                            Pudong New Area
------------------------------------------------------------------------------------------------------------------

                               Diagram No.
------------------------------------------------------------------------------------------------------------------

                               Class of Land
------------------------------------------------------------------------------------------------------------------

Condition of Land
                               Term of Use                  From February 3, 2002 to February 2, 2076
------------------------------------------------------------------------------------------------------------------
                                              Total Area    400,000
------------------------------------------------------------------------------------------------------------------
                                              Area for      400,000
                               Use Area       Sole Use
------------------------------------------------------------------------------------------------------------------
                                              Area for                        Allocated Area
                                              Common Use
------------------------------------------------------------------------------------------------------------------
</TABLE>

                                Appendix 2 - iii

<PAGE>

--------------------------------------------------------------------------------

                     Nature of Ownership           Blanks in the following rows
--------------------------------------------------------------------------------

                     Construction Area
--------------------------------------------------------------------------------

                     Number of Blocks
--------------------------------------------------------------------------------

                     Block No.
--------------------------------------------------------------------------------

Condition
of Building          Room No. or Location
--------------------------------------------------------------------------------

                     Type
--------------------------------------------------------------------------------

                     Structure
--------------------------------------------------------------------------------

                     Number of Stories
--------------------------------------------------------------------------------

                     Date of Completion
--------------------------------------------------------------------------------

                                                         Area unit: square meter

                                 Appendix 2 - iv

<PAGE>

--------------------------------------------------------------------------------

                  Summary of Other Rights of the Real Property

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Completed by:  Pudong New Area Real Property Registration Office, Shanghai
               Municipality [Seal affixed]

Registration No.: 2001034516
--------------------------------------------------------------------------------

                                 Appendix 2 - v

<PAGE>

Diagram Showing the Area of the Granted Land for the Residential Area, Phase II,

                             Zhangjiang Hi-Tech Park

                                 [Map Diagram]

                                 Appendix 2 - vi

<PAGE>

                                   Appendix 2

                              Shanghai Municipality
                       Certificate of Real Property Rights

                         Hufengdipuzi (1996) No. 000961

                        Date of Issue: September 24, 1996

                                Appendix 2 - vii

<PAGE>

         In accordance with the Law of the People's Republic of China on Land
Management, the Law of the People's Republic of China on the Administration of
Urban Real Estate, the Regulations of Shanghai Municipality on Real Estate
Registration and other relevant laws and regulations and for the purpose of
protecting the lawful interests of the land use right owners and building
owners, registration is permitted and this Certificate is issued after
investigation and verification with respect to the land, buildings and other
attachments of the rights owner under its application for registration.

         This Certificate is evidence of the real property rights of the land
whose use right is granted or transferred.

                                        Buildings and Land Administration Bureau
                                        of Shanghai Municipality [Seal affixed]

                                Appendix 2 - viii

<PAGE>

<TABLE>
<S>                            <C>
--------------------------------------------------------------------------------------------------------------------

Rights Owner                   Zhangjiang Technology Park Development Co.
--------------------------------------------------------------------------------------------------------------------

Identity No.
--------------------------------------------------------------------------------------------------------------------

Location of Real Property      Zhangjiang Hi-Tech Park
--------------------------------------------------------------------------------------------------------------------

Condition of
Co-ownership
--------------------------------------------------------------------------------------------------------------------
                               Nature of Ownership         State-owned         Purpose             Hi-Tech and
                                                                                                   Residential
--------------------------------------------------------------------------------------------------------------------

                               Land No.                    Zhangjiang Hi-Tech Park (Lanes 1, 2, 3 and 5)
--------------------------------------------------------------------------------------------------------------------

                               Diagram No.
--------------------------------------------------------------------------------------------------------------------

                               Class of Land
--------------------------------------------------------------------------------------------------------------------

Condition of Land
                               Term of Use
--------------------------------------------------------------------------------------------------------------------
                                              Total Area   750,000
--------------------------------------------------------------------------------------------------------------------
                                              Area for
                               Use Area       Sole Use
--------------------------------------------------------------------------------------------------------------------
                                              Area for     420,000             Allocated Area      750,000
                                              Common Use
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                 Appendix 2 - ix

<PAGE>

--------------------------------------------------------------------------------

                 Nature of Ownership        Blanks in the following rows
--------------------------------------------------------------------------------

                 Construction Area
--------------------------------------------------------------------------------

                 Number of Blocks
--------------------------------------------------------------------------------

                 Block No.
--------------------------------------------------------------------------------

Condition        Room No. or Location
of Building
--------------------------------------------------------------------------------

                 Type
--------------------------------------------------------------------------------

                 Structure
--------------------------------------------------------------------------------

                 Number of Stories
--------------------------------------------------------------------------------

                 Date of Completion
--------------------------------------------------------------------------------

                                                         Area unit: square meter

                                 Appendix 2 - x

<PAGE>

--------------------------------------------------------------------------------

                  Summary of Other Rights of the Real Property

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Completed by:  Pudong New Area Real Property Registration Office, Shanghai
               Municipality [Seal affixed]

Registration No.: 000961
--------------------------------------------------------------------------------

                                 Appendix 2 - xi

<PAGE>

                                   Appendix 3

                                  [Map Diagram]

                                 Appendix 3 - i

<PAGE>

                                  [Map Diagram]

                                 Appendix 3 - ii

<PAGE>

                                  [Map Diagram]

                                Appendix 3 - iii<PAGE>

                                                                    Exhibit 10.2

                 [Translation from Original Document in Chinese]

No.:      Jingjifangdichurang [He] Zi (2003) No. 044

File No.:

               Beijing Economic and Technological Development Zone

                       State Land Use Right Grant Contract

Grantor:  Buildings and Land Administration Bureau of Beijing Economic and
          Technological Development Zone

Grantee:  Beijing Microelectronics Corporation

<PAGE>

               Beijing Economic and Technological Development Zone

              State Land Use Right Grant Contract (the "Contract")

       Article 1             Parties to this Contract

       Grantor:              Buildings and Land Administration Bureau of Beijing
                             Economic and Technological Development Zone
                             (hereinafter referred to as "Party A")

       Legal Address:        No. 4, Wan Yuan Street, Beijing Economic and
                             Technological Development Zone

       Postcode:             100176

       Legal Representative: Zhang Fengmin, Bureau Director

       Grantee:              Beijing Microelectronics Corporation (hereinafter
                             referred to as "Party B")

       Legal Address:        No. 18, Wengchang Avenue, Beijing Economic and
                             Technological Development Zone

       Postcode:             100176

       Legal Representative: Wang Yangyuan, Chairman

       In accordance with the Law of the People's Republic of China on the
Administration of Urban Real Estate (hereinafter referred to as the "Law on
Administration of Urban Real Estate"), the Regulations of the Beijing Economic
and Technological Development Zone, the Measures of Beijing Municipality on the
Implementation of the Provisional Regulations of the People's Republic of China
Concerning the Grant and Transfer of the Right to Use State Land in Urban Areas
(hereinafter referred to as the "Measures") and other relevant laws and
regulations of the State and this Municipality, this Contract is entered into
between the parties on the basis of the principles of equality, voluntariness
and compensation.

       Article 2      Party A shall grant the use of the right of the land in
accordance with this Contract. The ownership of the land shall belong to the
People's Republic of China and underground resources, underground substances and
urban public utilities shall not fall within the scope of the grant of the use
right of the land.

       Article 3      After the grant to Party B of the land use right in
accordance with this Contract, the activities relating to the development,
utilization and business of the land within the granted land shall comply with
the laws and regulations of the People's Republic of China and

                                       1

<PAGE>

the relevant stipulations of the Management Committee of the Beijing Economic
and Technological Development Zone, and shall not prejudice the social public
interests and such lawful interests shall be protected by the laws.

       Article 4      The lot granted by Party A to Party B shall be situated at
Beijing Economic and Technological Development Zone, Lot 41M1 at No. 47 Street
Zone and No. 41 Street Zone, with an area of 240,139.60 square meters (this is
the final location of the area in the certificate issued after confirmation of
the right.) Its location and four directions are shown on the map attached
hereto. The attached map has been confirmed by Party A and Party B by affixing
their signatures thereto.

       Article 5      The lot granted under this Contract shall be for the
construction of microelectronic plant project in accordance with the detailed
planning requirements as approved by the administration authorities governing
the overall planning of Beijing Economic and Technological Development Zone and
the planning of the development zone.

       During the term of the grant, if a need to change the usage of the land
arises, approval from Party A and the administration authorities governing the
planning of Beijing Economic and Technological Development Zone shall be
obtained. A new land use right grant contract shall be entered into in
accordance with the relevant stipulations, the land premium for the land use
right shall be adjusted and procedures for registration of the land use right
shall be completed.

       Article 6      The term of the grant of the land use right under this
Contract shall be 50 years, calculated from the date on which the "State Land
Use Certificate" of the People's Republic of China for the lot is issued.

       Article 7      The Terms for Use of Land (Appendix 1) appended to this
Contract shall be an integral part of this Contract and shall have the same
legal effect as that of this Contract. Party B shall agree to use the land in
accordance with the Terms for Use of Land.

       Article 8      Party B shall agree to pay to Party A the land premium for
the land use right and, in addition to payment of the fee for the use of the
land to Party A in accordance with the relevant regulations of the Government,
Party B shall also pay taxes in accordance with the provisions of the Law on
Administration of Urban Real Estate, the Measures and the tax regulations of the
People's Republic of China.

       Article 9      The land premium [land ready for development] under this
Contract shall include: the land use right grant fee, infrastructure and utility
construction fee with respect to the disconnected points outside the red-line of
the street zones as planned (exclusive of the fee for electricity connection
from the switch station to the users and the fee for application and
installation with respect to the natural gas for industrial use), land
development fee and resettlement fee for land requisition. In accordance with
the provisions for the land grant price in the Letter of Undertaking with
respect to the Request for Policy Support to SMIC Beijing Project from the
Management Committee of Beijing Economic and Technological Development Zone, the
land premium for the land use right shall be RMB34.47 per square meter, totaling
Renminbi

                                       2

<PAGE>

Eight Million Two Hundred Seventy Seven Thousand Six Hundred and Twelve
(RMB8,277,612).

       Article 10     Within 10 days after this Contract is signed by the
Parties, Party B shall pay to Party A 20% of the total sum of the land premium
for the land use right, totaling Renminbi One Million Six Hundred Fifty Five
Thousand Five Hundred Twenty Two and Forty Cents (RMB1,655,522.40), by cash,
check or transfer check, as a deposit for the performance of this Contract and
the balance (i.e. 80% of the total amount of the land premium), totaling
Renminbi Six Million Six Hundred Twenty Two Thousand Eighty Nine and Sixty Cents
(RMB6,622,089.60), shall be paid in full within 60 days. In case of default in
making payment, Party A shall have the right to rescind this Contract, recover
the land use right and the deposit collected shall not be returned.

       Article 11     Upon payment of all land premium for the land use right,
Party B shall complete the procedures for registration of the land use right at
the Buildings and Land Administration Bureau of Beijing Economic and
Technological Development Zone in accordance with the stipulations, and Party A
shall issue the State Land Use Certificate of the People's Republic of China to
Party B within 30 days after full payment of all land premium and the submission
of application for registration by Party B.

       Article 12     After obtaining the land use right, Party B shall, in
addition to the land premium, contribute 25% of the total construction and
investment amount during the term of use stipulated in this Contract and
thereupon it can transfer, lease or mortgage the land use right or use the land
use right for other business activities (See Article 13 for special agreement).
The land use right shall not be transferred, leased or mortgaged in case of
failure, without any special reason, to invest in, develop and use the land in
accordance with the Terms of the Use of Land.

       Article 13     After obtaining the land use right, Party B shall only use
it for the construction of microelectronics plant project. With respect to the
products, which do not fall within the category of the microelectronic industry,
additional land premium shall be paid at the standard land premium published at
the Development Zone.

       In case of transfer or lease by Party B to other land users for use or
use of it for other business activities, procedures for registration of the
transfer or lease shall only be completed upon payment of additional land
premium at the standard land premium then published at the Development Zone and
in accordance with the relevant industry policy.

       With respect to transfer of the land use right by Party B, in case of
disposal of the mortgaged real property, an amount equivalent to the land
premium at the standard land premium then published at the Development Zone
shall be first deducted from the proceeds of such disposal for payment to the
Government land administration authorities and the balance can then be paid to
the mortgagee in priority.

       Article 14     When Party B transfers the land use right, the rights and
obligations stipulated in the Contract shall be transferred consequentially and
the ownership of the structures on and other attachments to the land shall be
also transferred consequentially. In case of lease or

                                       3

<PAGE>

mortgage by Party B of the real property and the land use right, it shall
continue to perform this Contract, and the contents of the lease or mortgage
contract shall not violate the relevant provisions of this Contract. Within 30
days after a lease or mortgage contract is signed, Party B shall complete the
procedures for registration at the Buildings and Land Administration Bureau of
the Development Zone.

       Article 15     Commencing from the land use right being obtained, Party B
shall pay land use fee to Party A each year. The standard land use fee shall be
RMB2.0 per square meter, totaling Renminbi Four Hundred Eighty Thousand Two
Hundred Seventy Nine and Twenty Cents (RMB480,279.20). Time for payment shall be
before December 15 of the current year. In case transfer of land use right is
affected, payment shall be made by the new land user to Party A. Adjustment of
the land use fee shall be implemented in accordance with the unified regulations
of Beijing Municipal People's Government.

       In accordance with the provisions in the Letter of Undertaking in respect
of the Request for Policy Support to SMIC Beijing Project from the Management
Committee of Beijing Economic and Technological Development Zone, Party B can
postpone payment of the land use fee for three years and conduct consultation
three years later.

       Article 16     Unless otherwise provided in this Contract, Party B shall
remit the fee required to be paid under this Contract to Party A's bank account
on or before the payment date stipulated in this Contract. Name of the bank:
Agricultural Bank of China, Beijing Municipal Development Zone Branch; Bank
account: [_____________].

       In case of change in Party A's bank account, written notice shall be made
to Party B within 10 days after the change. Party B shall not bear liability for
breach of contract in respect of any late charges arising out of the delayed
payment due to the failure of Party A to give notice of such change in a timely
manner.

       Article 17     In case of default of payment by Party B of the sum
payable in accordance within the time stipulated in this Contract, application
shall be made to Party A and, subject to consent, a possession fee at 0.021% of
the fee payable per day shall be paid for the extended payment term.

       Article 18     After obtaining the land use right, Party B shall invest
in, develop and utilize the land during the stipulated period in accordance with
the provisions set forth in the Design, Construction and Completion in the Terms
of the Use of Land appended to this Contract. In case of completion beyond the
period as stipulated, Party A shall have the right to recover the land use right
without compensation, and the details of implementation shall be in accordance
with the relevant provisions of the Terms of the Use of Land appended to this
Contract.

       Article 19     Upon the expiry of the term of the grant stipulated in
this Contract, Party A shall have the right to recover the land use right of the
lot, structures on and other attachments to the land without compensation in
accordance with the provisions of Article 29 of the Measures. Party B shall
surrender the Land Use Certificate and complete the procedures for
deregistration of the land use right at the Buildings and Land Administration
Bureau of the

                                       4

<PAGE>

Development Zone. In case Party B needs to continue to use the lot, it shall
submit an application for renewal 180 days prior to the expiry of the term,
enter into a new land use right grant contract with Party A, pay the land
premium for the land use right to Party A and complete the procedures for
registration of the land use right.

       Article 20     In case of the failure of Party A to implement in
accordance with the provisions of Article 11 of this Contract, it shall pay
liquidated damages at 0.2% of the land premium to Party B for each month
delayed, and in case of delay over 60 days, Party B shall have the right to
rescind this Contract. If Party B is unwilling to rescind this Contract if even
the delay is over 60 days, the term of grant of the land use right under this
Contract shall be extended accordingly.

       Article 21     Neither Party shall be responsible for the delay or
failure to perform the obligations under this Contract because force majeure
occurs and such Party is not at fault, provided that it shall take all necessary
remedial measures to mitigate the loss to be caused.

       The Party encountering force majeure shall notify the other Party in
writing of the condition of the event within 72 hours by letter or cable (telex
or fax) and, within 7 days after occurrence of the event, submit a report that
this Contract is unable to be performed or unable to be partially performed and
state the reason that necessitates an extension for performance.

       Article 22     Notices and communications required or permitted under
this Contract, transmitted in whatsoever manner, shall become effective on the
actual date of receipt. The correspondence addresses of the Parties shall be:

       Party A

       Legal Name:    Buildings and Land Administration Bureau of Beijing
                      Economic and Technological Development Zone

       Legal Address: No. 4, Wan Yuan Street, Beijing Economic and Technological
                      Development Zone

       Correspondence Address:  No. 4, Wan Yuan Street, Beijing Economic and
                                Technological Development Zone

       Postcode: 100176    Telephone No.: 6788-0187     Fax No.: 6788-0187

       Party B

       Legal Name:    Beijing Microelectronics Corporation

       Legal Address: No. 18, Wechang Avenue, Beijing Economic and Technological
                      Development Zone

                                       5

<PAGE>

       Correspondence Address:  No. 18, Wechang Avenue, Beijing Economic and
                                Technological Development Zone

       Postcode: 100176    Telephone No.: 6275-3882     Fax No.: 6275-3882

       Article 23     The formation, validity, interpretation and performance of
this Contract and settlement of disputes shall be protected and governed by the
laws of the People's Republic of China.

       Article 24     In the event a dispute arises from the performance of this
Contract, the Parties shall resolve such dispute through consultation. If the
dispute cannot be resolved through consultation, legal proceedings may be
brought in the local People's Court with jurisdiction.

       Article 25     This Contract is written in Chinese language. This
Contract is executed in five originals. Party A shall hold two originals, Party
B shall hold two originals and one original shall be delivered to Beijing
Municipal State Land Resources and Buildings Administration Bureau for filing.

       Article 26     Any matters not provided for in this Contract may be
agreed upon by the Parties in an annex to be attached hereto.

       Article 27     This Contract shall become effective upon execution by the
legal representatives of the Parties.

                                      6

<PAGE>

Party A:  Buildings and Land Administration Bureau of Beijing Economic and
          Technological Development Zone [Seal affixed]

Legal Representative:

(or Authorized Signatory)[Signature affixed]

Party B:  Beijing Microelectronics Corporation [Seal affixed]

Legal Representative:

(or Authorized Signatory)[Signature affixed]

                           December 31, 2002, Beijing

                                       7

<PAGE>

Appendix 1

                            Terms of the Use of Land

1.   Position of Boundary Markers

     1.1  Within 10 days after the State Land Use Right Grant Contract of
          Beijing Economic and Technological Development Zone (hereinafter
          referred to as the "Contract"; the Contract No. is Jingjifangdichurang
          [He] Zi (2002) No. 044) is duly executed, the City Planning
          Administration Bureau of Beijing Economic and Technological
          Development Zone shall prepare a notice of erecting markers in respect
          of the land for construction, and Party B shall hold such notice and
          the 1/2000 map to complete the procedures for erecting the markers at
          Beijing Municipal Survey and Drawing Design Research Institute and
          receive the table of results for the position of boundary markers and
          the marker erection for the land for construction.

     1.2  After verifying the area without errors in conjunction with the City
          Planning Administration Bureau of the Development Zone, Party A shall
          make confirmation by affixing its signature to the red-line map.

     1.3  The boundary markers shall be properly protected by Party B and shall
          not be changed without permission. In case of damage to or removal of
          the boundary markers, report shall be submitted to Party A in a timely
          manner with a request for erection again. The fees for handling the
          marker erection, additional marker erection and purchase of maps shall
          be paid by Party B.

2.   Requirements for Utilization of the Land

     2.1  Party B shall meet the following requirements for the construction of
          structures within the red-line map:

          (1)  Nature of the main structures is specified as production plant.

          (2)  Attached structures are utilities.

          (3)  Building capacity ratio is 0.6 - 1.5 (based on the approval for
               the proposal issued by the planning authorities).

          (4)  Building density is not higher than 45%.

          (5)  Gross area is not less than 160,000 square meters.

          (6)  Building height of the 50 meters within one side along Liangshui
               River is not higher than 24 meters and the rest is not higher
               than 40 meters.

                                       8

<PAGE>

          (7)  Greenery ratio than is not lower than 30%.

          (8)  Height on the outdoor ground shall be based on measurement by the
               planning authorities.

          (9)  Designs for all structures comply with the current construction
               design standards and rules of the State.

          (10) Within the land being used, in case the Government needs to
               construct a specific project, Party B agrees to construct or pass
               through within the red-line area, and in case of damage caused to
               the structures on the land, the construction unit shall give
               compensation in accordance with the stipulations.

          (11) In case of construction of a project for public interests, Party
               B agrees to the implementation in accordance with the planning.

3.   Design, Construction and Completion

     3.1  The construction design and construction usage within the red-line
          area shall comply with land utilization requirements and in case of
          such matters involving transportation, piping, fire prevention,
          environmental protection, civil air defence and greenery, they shall
          be submitted to the relevant competent authorities for approval before
          construction.

     3.2  Within 180 days after the execution of this Contract, Party B shall
          commence construction in accordance with the approved planning and
          design drawings and construction design drawings.

     3.3  Party B shall complete the construction prior to December 31, 2004
          (save for the influence by force majeure); in case of delay in
          completion for over 180 days, Party A shall have the right to recover
          the land use right and deregister the State Land Use Certificate, and
          the structures on the land shall be vested in the State without
          compensation.

     3.4  In case of difficulties in completing the construction at the
          completion time in accordance with the forgoing requirements, Party B
          shall make an application for extension of the period for construction
          with sufficient reasons, provided that the extension shall not exceed
          360 days.

     3.5  After completion of the construction project, Party B shall coordinate
          with the relevant authorities to carry out a joint inspection for
          acceptance and submit the completion diagram to the relevant
          authorities in accordance with the relevant stipulations, and the
          construction project shall be used only after passing the inspection.

                                       9

<PAGE>

4.   Construction and Repair Activities

     4.1  When Party B carries out construction and repair activities within the
          red-line area, the responsibilities borne by it towards the
          environment and facilities shall include:

          (1)  The construction articles or wastes (such as mud, crushed stones
               and construction refuse, etc) shall not occupy or destroy the
               land and facilities outside the red-line area. Procedures for
               discharge of wastes shall be completed at the urban council of
               the Development Zone.

               In case temporary occupation of the urban roads is required,
               application shall be submitted to the public security and
               transportation authorities for approval.

               In case temporary use of the land outside the red-line area,
               consultation shall be conducted with the user of such land; in
               case the land has not been approved for grant or has not been
               requisitioned, application shall be submitted to Party A and the
               planning authorities of the Development Zone and land charges
               shall be paid in accordance with the stipulations.

          (2)  Dumping, storage of any materials or any working activities shall
               not be allowed without the permission of the relevant authorities
               of the Management Committee of the Development Zone.

          (3)  Party B shall ensure that all kinds of contaminants within the
               land being used shall be treated effectively and the discharge
               standards stipulated by the State and Beijing Municipality shall
               be met so that no harm shall be caused to the environment.

          (4)  During the land use term, Party B shall properly protect all
               urban facilities within the lot without causing damage, failing
               which, it shall bear all costs for carrying out the repair work.

     4.2  Party B shall not open up, remove or dig the land at the adjacent lot.

     4.3  Prior to commencement of construction or repair work, Party B shall be
          fully aware of the location of the public uncovered sewage ditch,
          drainage (inclusive of tap-water pipes), cables, electrical wires and
          other facilities, and submit the plan for treatment of the forgoing
          facilities to the Management Committee of the Development Zone; no
          work shall be commenced before approval is obtained by Party B.

                                       10

<PAGE>

5.   Various Urban and Public Utilities

     Various urban and public utilities, such as the water, electricity, gas,
     heat and telecommunications used by Party B and wastes discharge,
     environment, public health and greenery shall be dealt with at the relevant
     professional competent authorities of the Development Zone.

6.   Supervision and Inspection

     6.1  During the land use term, Party B shall have the right to inspect and
          supervise the condition of use of the land within the red-line area
          and Party B shall not reject or resist.

     6.2  Party B shall not occupy the land outside the red-line area (including
          placing articles and equipment) for any reason, failing which, it
          shall be handled as unlawful occupation.

     6.3  Party B shall carry out construction within the land being used in
          accordance with the stipulated land usage and the requirements in the
          engineering design drawings.

     6.4  Without the approval of the planning authorities, Party B shall not
          dismantle or rebuild or reconstruct the structures within the land
          being used, failing which, the relevant authorities shall have the
          right to demand restoration or dismantling, and in case of
          non-implementation, specific performance can be exercised and the
          required fee shall be paid by Party B.

                                       11

<PAGE>

(No text in this page)

Party A:  Buildings and Land Administration Bureau of Beijing Economic and
          Technological Development Zone [Seal affixed]

Legal Representative:

(or Authorized Signatory)[Signature affixed]

Party B:  Beijing Microelectronics Corporation [Seal affixed]

Legal Representative:

(or Authorized Signatory)[Signature affixed]

                           December 31, 2002, Beijing

                                       12

<PAGE>

                                 [Red-line Map]

                                       13

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