The Ferrari team performed well in front of their home crowd, as Schumacher's team-mate Rubens Barrichello held championship challenger Kimi Raikkonen to fourth.
The race was effectively decided in the first lap, as Schumacher and Juan Pablo Montoya drove wheel to wheel til the first corner.
The pair came close to colliding, but Schumacher came out best.
He put in an awesome performance, and carrying more fuel, he was able to get further ahead of Montoya, who finished second.
Barichello came in third. Britain's Jenson Button and David Coulthard were forced to pull out before finishing because of technical problems.