HSINCHU, Taiwan, June 4 (Reuters) - Taiwanese contract

chipmaker TSMC has held talks with its customers about

whether to move its fabs off the island amid increased tensions

with China, although such a move would be impossible, a senior

executive said on Tuesday.

Speaking to reporters after the company's annual shareholder

meeting in Hsinchu, where TSMC is headquartered, Chairman C.C.

Wei said that given 80-90% of its production capacity is in

Taiwan, it would be impossible to move the factories.