Hong Kong, Feb 21 (IANS): As India and the US double down on local semiconductor manufacturing, the municipal government of Guangzhou in China has invested 200 billion yuan ($29 billion) to establish funds that will help spur activities involving semiconductors, the media reported on Tuesday.

Guangzhou's Industry Investment Fund of Funds (FoF) will focus on activities involving semiconductors, renewable energy and advanced manufacturing, reports the South China Morning Post.

Meanwhile, the city's Innovation Investment Fund of Funds will target financing for early-stage hi-tech companies.

"The city's funding effort would appear to raise the stakes for China in its tech rivalry with the US," the report mentioned.

US President Joe Biden enacted into law the Chips and Science Act last year that enables the US to give $53 billion in incentives to attract more chip manufacturing in the country.

Meanwhile, the Indian government approved Rs 76,000 crore ($10 billion to attract investments in the field of semiconductors and display manufacturing.

Vedanta and Foxconn signed a Memorandum of Understanding (MoU) with the Gujarat government last year to invest Rs 1,54,000 crore to set up the semiconductor and display manufacturing plant which is India's first.

In China, state-level financial support has helped develop major industries over the past decades.

The China Integrated Circuit Industry Investment Fund or the Big Fund in 2014 was the primary financing vehicle for the country's semiconductor industry, with the initial round of investments reaching more than 138 billion yuan.

"The government of eastern Anhui province last month announced that it will set up a guidance fund of 200 billion yuan, targeting tech industries," said the report.