President Biden on Monday morning announced up to $6.4 billion in grants to Samsung for the South Korean company to expand chip production in the Austin area.

Why it matters: The massive Biden-led investment in chip production aims to reduce dependence on China and Taiwan, and gives the administration a permanent legacy across the U.S.

What they're saying: The preliminary agreement with the Commerce Department "will unleash over $40 billion in investment from Samsung, and cement central Texas's role as a state-of-the-art semiconductor ecosystem, creating at least 21,500 jobs and leveraging up to $40 million in CHIPS funding to train and develop the local workforce," the White House announcement said.

Thought bubble, via Axios managing editor for technology Scott Rosenberg: The moves aim to strengthen domestic chip production as a strategic defense against disruption in the global supply chain, which is heavily dependent on Taiwan. The U.S. wants to make sure chips keep flowing in the event of a Chinese assault on the island or an earthquake or other natural disaster.

Zoom in: The agreement includes an existing site in Austin and a new chip manufacturing hub nearby in Taylor, Texas.

• "The proposed investment would turn Samsung's existing presence in Texas into a comprehensive ecosystem for the development and production of leading-edge chips in the United States," the Commerce Department said.
• That will include "two new leading-edge logic fabs, an R&D fab, and an advanced packaging facility in Taylor, as well as an expansion to their existing Austin facility," per the announcement.

Thought bubble, via Axios Austin's Asher Price: With the Taylor announcement, the prosperity that Austin has enjoyed as a semiconductor hub appears poised to spill out into a small-town Texas satellite.

• Spending money on chip manufacturing in Central Texas is also one of the few areas of agreement for Texas' Republican Gov. Greg Abbott and the Biden administration.

Catch up quick: Last month, Biden announced $20 billion in funding for Intel to expand semiconductor production in several states, including Arizona, Ohio and New Mexico.

• Biden's CHIPS and Science Act is also providing up to $6.6 billion for the Taiwan Semiconductor Manufacturing Company to expand manufacturing in Phoenix.
• Samsung is the number two manufacturer of chips globally after TSMC.