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.

(Reporting by Faith Hung; Editing by Anne Marie Roantree and Kim Coghill)