U.S. Vice President Kamala Harris and Republican presidential opponent Donald Trump have floated significantly different strategies to boost American semiconductor manufacturing, but the problem is that both methods 'take time.'

The remarks were made by Joe Albano, investing group leader of Tech Cache, on Wednesday in a conversation with Rena Sherbill, Seeking Alpha's director of content programming, and Victor Dergunov, investing group leader of The Financial Prophet, at the Election 2024 investing summit.

"It's clear that both candidates have a very different approach to how to get American semiconductors back on track," Albano said.

"The would-be Harris administration is looking at funding it from internally - CHIPS Acts, things like that. Whereas, a Trump administration is looking to put tariffs on foreign chip companies so that it forces them to build those plants in the United States, and they would do it organically without government handouts or government tax breaks or things like that," he added.

In August 2022, U.S. President Biden signed into law the CHIPS and Science Act to revitalize the domestic semiconductor industry. On the two-year anniversary of the signing of the Act two months ago, the Department of Commerce said it had till date announced over $30B in proposed CHIPS private sector investments spanning 23 projects across 15 states, including 16 new semiconductor facilities.

"Do tariffs work or does government spending from Congress work?" Tech Cache's Albano mused. "I think there's flaws to both of them, because if you saw the CHIPS Act, it took two years before we started to even getting a payout to any of these companies," he added.

"I don't know which one would be better, the problem is both take time," Albano said.

The investing group leader believes that whatever either administration does in early 2025, the results of those actions will take until the end of the term to really show up.

"I think what will happen ultimately in the stock market is that it will move on whatever decision is made, but by the time it actually plays out, bears out in reality when chips are actually coming off the line, the returns would have already been made basically," Albano said.

Semiconductor stocks have seen massive gains since the artificial intelligence (AI) craze started in late 2022. Today, the demand for chips that can support AI-processes is huge. The Philadelphia Semiconductor Index (SOX) - a barometer for chip stocks - has advanced +23.4% YTD.

Here are some exchange-traded funds of interest linked to semiconductors: (SMH), (SOXX), (SOXL), (FTXL), (XSD), (USD), (PSI), and (SEMI).

For investors looking to track the elections through market instruments, here are some politically driven Republican and Democratic exchange-traded funds:

• God Bless America ETF (YALL)
• American Conservative Values ETF (ACVF)
• Point Bridge America First ETF (MAGA)
• Democratic Large Cap Core ETF (DEMZ)
• Unusual Whales Subversive Democratic ETF (NANC)
• Unusual Whales Subversive Republican ETF (KRUZ)

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