TAIPEI, Oct 17 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd (2330.TW) said it would not build a advanced chip factory in a rural part of northern Taiwan after local residents protested that they did not want to move to accommodate an expansion of an industrial park. The company said it would work with the government-run Science Park Administration "to evaluate land in Taiwan suitable for building semiconductor fabs". It did not mention potential alternative sites.

The world's largest contract chipmaker was intending to build a 1-nanometre chip factory in Longtan, according to a Central News Agency report in December that quoted a Science Park Administration official.

TSMC's 3-nanometre technology is currently its most advanced in mass production.

Taiwan Economy Minister Wang Mei-hua said the government would help TSMC with its land, water and power needs given that semiconductors are one of island's most important industries.

Chen Chi-mai, mayor of Kaohsiung in the south where TSMC is currently building a 2-nanometre chip factory, said his city has enough water, power, and land for more semiconductor factories.

"Opportunities are reserved for those who are prepared," he told reporters.

Reporting by Sarah Wu; Additional reporting by Ben Blanchard and Yimou Lee; Editing by Edwina Gibbs