HONG KONG, Nov 10 (Reuters) - SMIC (0981.HK: Quote, Profile, Research), China's largest contract chipmaker, said on Tuesday that it will pay $200 million and give the right to purchase up to 10 percent of the company to Taiwan-listed TSMC (2330.TW: Quote, Profile, Research) to settle lawsuits between the two.

Semiconductor Manufacturing International Corp (SMI.N: Quote, Profile, Research) said $200 million would be paid in installments over the next four years and would cover current and previous claims against the company by TSMC, according to a statement.

SMIC said it would also grant 8 percent of its issued share capital to TSMC and the warrant to purchase additional shares that could bring TSMC's holding to as much as 10 percent. (Reporting by Doug Young; Editing by Chris Lewis)