Musk, Huang warn China may close lithography gap by 2030
Elon Musk and Jensen Huang warned that China could significantly narrow its advanced lithography gap by 2030, creating long-term uncertainty for the AI chip supply chain. This assessment coincides with ASML’s plans to increase EUV output beyond 110 units by 2028, aiming for at least 80 tools in 2027 to meet rising AI infrastructure demand. Meanwhile, geopolitical tensions are intensifying,…
Key points
- Musk and Huang say China may narrow its lithography gap by 2030, posing long-term risks to the industry.
- ASML plans to raise EUV output beyond 110 units by 2028, with at least 80 tools planned for 2027.
- Broadcom is providing US$42 billion in financing to Anthropic, potentially covering a third of its TPU lease.
In parallel, major capacity expansions are underway. TSMC is in talks with Elon Musk’s Terafab regarding a new Texas plant, potentially involving equity or purchase commitments. Additionally, TSMC supported the rapid construction of VSMC’s first Singapore fab, which opened in 22 months and is set for mass production in 1Q27. To secure supply for its Optimus robot program, Tesla is cutting memory specifications for its AI5 and AI6 chips, reducing AI5 memory from 144GB to 72GB to lower costs and ensure scale.
Financial structures in the AI sector are also shifting. Broadcom has arranged a US$42 billion financing deal for Anthropic, which may cover about one-third of its US$125.2 billion five-year TPU lease commitment. This arrangement highlights an emerging "chip-financing loop" where suppliers help fund the infrastructure that drives demand for their own products, raising concerns about concentration risk and increased reliance on debt.
The story so far
2 episodes →- Musk, Huang warn China may close lithography gap by 2030this story
Weekly news roundup: Musk looms large as AI chip boom drives capacity expansion and geopolitical risks
digitimes.com · 4 October 2026
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