Samsung Electronics is struggling to catch up in the the race to supply chips for artificial intelligence as it bets big on a delayed semiconductor plant northeast of Austin.

The world’s largest maker of memory chips and smartphones said Thursday its profit dropped another 55% in the second quarter. Its chipmaking operations — which include the new plant in Taylor — were hit even harder.

Samsung blamed U.S. export controls, weak demand and low production at its chip foundries for the decline.

MORE: Tesla taps Samsung in $16.5B AI chip deal tied to new Austin-area facility

The report came just days after the Korean company announced a $16.5 billion deal with Tesla Inc. tied to the company’s new plant in Texas. Samsung is counting on the Taylor fab — and business from clients li

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