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...