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…ply chain controls and usage controls around both robotics um and chips and data centers right um sorry I'm going to throw export controls in there so four types of controls um all all uh all of these controls are relevant for you and now um either in from your end customer perspective or as a rel relatively new entrant to, you know, we're going to own the end product and have a supply chain organization of your own. Like, um, what's your what's your stance on, you know, how uh how protectionist I I realize it's not an American company, but you do a lot of business here. Uh, how [clears throat] protectionist the US or the West should be about manufacturing of chips, creation of data centers, robotics, like what what are your overall stances here? So putting my American citizen hat on for a moment and ARM as you said is not a it's not an American company by our HQs in the UK but >> we have a lot of employee we have I wouldn't say half our employees maybe 30% are in the US I think 40% are in the UK and maybe 30% Asia. So we're a we're a global company but with a huge you know with a huge US uh footprint but as a as an American citizen >> and someone who grew up >> in semiconductors and uh I I remember in the 1980s uh when the US was the leader in semis and Japan Inc. uh started to really get very very aggressive in terms of memory pricing and essentially taking a lot of market share. the US started something called Semitech, you know, back in the day, which is really around how to refortify uh the American semic industry, which I thought at the time was was was the right move and there was a lot of energy around that. [snorts] Uh internet hit, SAS companies were all the were all the rage. People kind of forgot about semis being a strategically important uh asset. But I think it is critically important for the United States to have as much of that technology inside uh on our on US soil. And I would say the same thing to to UK lesser just because of the scale of the UK. But when you think about the the size of the US market uh the criticality of semiconductors to what the US does whether it's Intel, whether it's Micron, uh I think we need more US fabs. uh it's critical for national security. It's also critical for diversification of supply chain. Uh so I'm a I'm a big believer in terms of that as a strategy. I think it's really really critical. You know, as far as the export controls go and we're going to limit we're going to limit the chips because uh we don't want China to to win the race, you know, end quote. You know, my my personal view is that it's an infinite game. I believe first in terms of the race that there's not going to be a winner, the race is going to be over. But you could get to a situation where a lot of the critical technologies are not US-based. >> And that's not going to be a good thing, right? Because well, people say, well, you know, the cost will go down and and and goods are cheaper. But ultimately, and I'm a big believer of this, um, number one, for both national security reasons and economic, you want to be at the forefront of technology because it drives innovation, but it also drives imately, and I'm a big believer of this, um, number one, for both national security reasons and economic, you want to be at the forefront of technology because it drives innovation, but it also drives ecosystems. Uh if you think about the US auto industry in the 1950s post World War II where Detroit was the center of the universe, you had spots across Wisconsin, Ohio, Illinois, whether it was Firestone or Bridgestone or Bridgestone Japanese, but other companies in that ecosystem that fed into it. Data centers are kind of the same way. People look at data centers say, "Oh, it's a big Costco box and there's two parking two cars in the parking lot and all of that is being driven automatically, so there's no jobs." I call BS on that because if you think about whether it's around energy, liquid cooling, all of the things that make the data center better, that's all those are all jobs that can be created and done here. So I think as a national policy, it's incredibly important for us to be investing a in the United States and b making sure that we stay uh stay in the lead. On the data center side in particular, it seems like um a lot of the the actions that are being taken to try and prevent future data centers feel more coordinated than not. I know it's phrases grassroot efforts and uh but it seems like there's some coordinated function there. Do you have a hypothesis in terms of like why there's been this sudden unexpected outcry on data centers from certain corners? I think there is a to to we were maybe chat about this a bit earlier that there's a fear that AI means job loss and and job loss means for all these things kind of implications. So I think unfortunately >> you think that fear is well grounded or because somewhere it seems like it's only creating jobs. >> No, I think it's I don't think it's well grounded at all. I I >> I think the electricians labor union specifically said please don't ban the data centers. We need these jobs very recently. Oh >> completely. Yeah, I mean it and these are jobs that may people that's a great that's a great example, right? Because here's one where there may have been a stigma to being an electrician, right? Electrician is either it's not maybe viewed as a highly educated job or you don't need a PhD. It's a highly skilled job that requires a lot of training and certification and you need tons of them, you know, to to do this kind of work. Uh and that's very very critical to the to the data centers. Um so I think to your question, I think part of the backlash is just from fear. just there's just a fear that my jobs are going to go away. Uh the AI boom for good or for bad has benefited a lot of people and there's a lot of people have no benefit from it, right? And and there's a lot of America just again on the American political scene who it's tough to make the mortgage, you know, their paychecks haven't gone up and now they've got this AI thing that just looks going to even harder. So I think the the data centers become a bullseye unfortunately for all the things that could be bad about AI which I think is just people are holding up like fake tainted water and claiming that you know it's ruining the water ters become a bullseye unfortunately for all the things that could be bad about AI which I think is just people are holding up like fake tainted water and claiming that you know it's ruining the water supply. So I feel like there's other kind of things that are just being made up about data centers as a way to try and create fear. >> For sure. Yeah. For sure. And unfortunately it's become the boogeyman for a lot of a lot of things. Mhm. >> I think it's also pretty clear that there's like um you know uh organized media influence around these issues as well. Um uh but it doesn't I I think it you know you can have all three separate points here including yours Renee which is um there are benefits that uh from the construction of essentially like a rapidly growing new industry that can create new technology and new jobs and create you know um external wealth for the communities around them. But it it's on the industry to go communicate that. >> Yeah. I mean on on first principles whether it was smartphones, the internet, personal computers, fill in your favorite technology, there is no downside from being the leader. >> There's there's just not >> this is maybe the most important point. >> There's just not downside from being the leader. Yeah. >> There are there are second and third order effects that you may not like, >> but to be the lagard, >> you you the you are having the entire script dictated to you >> and everything that kind of comes with it. I mean look at other parts of the world that are just not the leaders in this space economically and socially they're they're left behind and governments you know carry the large tax burden of it. So if you're on the wave of some technology innovation and I would argue to some extent AI is a little bit of the final frontier of of what can be done with essentially intelligence. Of course you want to be in the lead. Of course you want to be driving that because the benefits for society are going to be enormous. What are you most excited about in the coming year or two for ARM? >> Being in the center of all that. Yeah. Honestly, I think we are we are I feel fortunate every day that we are in the heart of all of this and and um the fact that we can be a participant in that ecosystem. We can help drive the innovation. We can be involved with leadership companies, develop leadership products. Uh we're right in the middle of it all because a all the AI needs some level of compute. That's what ARM does and that compute needs to be power efficient. That's what we're really really good at. So those roads all lead through us. So what I and I've, you know, been in this industry my my entire career had a lot of times thinking about gosh, what's the next product we're going to need? Do people really need another tablet and does it need to be 8.9 in or 9.2 in? And now it's I I there's no the abundance of opportunity innovation is so great with AI. So yeah, I'm just I'm I'm super excited and and and and feel blessed to be leading a company that's in the center of it all. >> The need for chips is driven by like massive change in workload, right? And we have continual massive change in…

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