Samsung Electronics Co.’s chip unit plunged a far bigger-than-expected 94% in the June quarter, reflecting the depth of a slump that’s plaguing the world’s largest memory chipmaker.

Just a few years ago, Samsung Electronics stood as a leading force in the global semiconductor race, dominating one chip sector and eyeing Taiwan’s TSMC in the battle for supremacy in another.

Musk noted Tesla is working with TSMC to make AI5 chips, which just finished the design. The AI5, a generation that is primarily built for FSD, will initially be made in TSMC’s Taiwan factory and then at its Arizona facility. Samsung already makes the AI4 chip, according to Musk.