I'm not sure about the second point but it seems premised on withholding IP from US which seems unlikely.
Much more likely that there is intense collaboration between say GCHQ and Arm (maybe both ways -> GCHQ gets to understand modern CPU security issues from Arm and Arm benefits from GCHQ input on threats). If that relationship swaps to NSA then there would be real damage to UK security apparatus.
Infineon (German owned) and Nexperia (Dutch owned) both own fabrication plants in the UK, so it's possible to scale that up if we were at war, the knowledge is here.
If you needed them for defence I'm sure you could set up a fab on older process nodes fairly fast. A tank consumes and generates so much power for moving that it doesn't matter if the CPUs in it will last only 2 hours in a cell phone...
(Speaking as a Canadian who has watched 30 years of continental economic integration and heard lots of friendly talk since the campaign for the 1988 Free Trade Agreement but now back of the line waiting for vaccines imported from Europe because the US won't export to us and our domestic manufacturing was sold off decades ago because of said continental integration.)
Also the US itself has used the "national security" excuse for trade issues multiple times over the last few years where it was seemingly not the case (steel & aluminum trade disputes, etc). So the precedent has been set. And there's little sign of Biden really doing much to reverse that.
That said, what Trump pulled with steel and aluminum is BS.
Seem to recall some very agitated US commentators bashing Canada when we chose not to enter the second war in Iraq. How's that working out for you, BTW?
I think it's a much more specific security issue.