SAN JOSE  (AP) — San Jose has approved a $7 million incentive package to keep Samsung Semiconductor in Silicon Valley and trump an open invitation from Austin, Texas, to expand its operations there.

The City Council unanimously passed the plan at its Tuesday meeting,

The package includes an expedited 120-day development permit process, a 50 percent break on utility taxes, and a $37,440 tax credit for each employee hired. The city is also reimbursing Samsung $500,000 for equipment purchases by the firm.

The deal was outlined at an August signing ceremony at the City Hall Rotunda with Gov. Jerry Brown, Mayor Chuck Reed and Jong-Joon Kim, president of device solutions for Samsung Electronics.

Samsung Semiconductor, based in San Jose since 1986, has 370 employees in 200,000 square feet of office space.