million-dollar difference in the cost of the project between austin and san jose. >> reporter: san jose had a deal started last year with the governor and approved today gives samsung about $7 million in economic development funds, tax breaks and incentives and will reduce fees associated with traffic, construction and utilities. high tech analysts say that san jose also had one big advantage. samsung didn't want to relocate. >> they want to be here. they want to be close to apple, they want to take apple's employees, they want to watch apple. >> reporter: with silicon valley doing well financially while most cities are hurting company cans are being courted. >> something we have to deal with all the time in san jose. there is probably a governor in the state today looking for companies that will move to their state. >> reporter: now samsung is staying put and the company said it hopes to start demolition and construction this summer. live in san jose. robert honda. >> a san jose executive was