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in computing, it will try to apply those to intelligence capability then to military systems, since that's what all great powers have tended to do in the past. linghao, if i can bring you in, how are the us efforts to try and prevent china from advancing and chip technology affecting chinese companies? i think the most famous example is huawei, right? the company was cut—off from getting advanced chips for a smartphone. and to give you a bit of context, like how impactful that was, at that time, huawei was the second largest smartphone maker in the world, after samsung. but now, hu...

And without these tools, you simply can't make an advanced semiconductor. and with the benefit of hindsight, given what we're seeing right now, what you call this global chip war, did it make sense, do you think, for the united kingdom to kind of wave through the sale of arm holdings? i think it's a positive step that the uk has passed the legislation that gives the government more oversight overforeign investment, especially chinese investment, in the uk. certainly you're seeing the uk government use that with regard to a chip—making facility called the newport wafer fab, and this is a tren...

Administration says? >> we should do everything possible to help taiwan prepare to defend itself, they have to be on the front line and willing to make sacrifice and commitment to do it. we can be standing by to help, if necessary, we take stand back to see what taiwan is willing to commit to if it comes to a fight. >> brian: in our national interest because all the tech and chips there to make sure taiwan is not controlled by china, right? >> absolutely, as far as i'm concerned if china invades taiwan and that does kickoff, i think what you will see is the chip making facility should become a...

Are actually not that large in a very automated facility, but rather tax policy and tax incentives. so, what the us is trying to do with the chips and science act is to level the playing field when it comes to tax incentives by offering some pretty generous tax policy, tax credits, to firms that build new chip facilities in the us. and the goal is to say the tools you put in the chip—making facility are the same regardless of which country you build a facility in. the power and electricity costs ought to be pretty similar. and so if the tax policy is similar as well, then there shouldn't be ...

The past two decades of increased investment in fabrication in east asia and taiwan and south korea, and especially in china, was the cost differential between building a facility there versus in the us, and the key driver of the cost differential was not labour cost, because the labour costs are actually not that large in a very automated facility, but rather tax policy and tax incentives. so, what the us is trying to do with the chips and science act is to level the playing field when it comes to tax incentives by offering some pretty generous tax policy, tax credits, to firms that build new...