NEW YORK: Intel Corp. and Nokia Corp. said Tuesday they're joining forces to build better technology for smart phones and other mobile Internet devices.

The deal is significant for Intel because it will help the world's biggest maker of PC microprocessors penetrate the smart phone market, an area Intel sees as crucial for growth.

Intel now makes smaller, lower-power chips for devices like ``netbooks'' _ stripped-down laptops that do less and cost less. The company wants its chips used in other devices that act as computers, like smart phones made by Nokia.

Nokia gets Intel's agreement to license modem technology from Nokia and build it into future Intel chips.

Intel is based in Santa Clara, California, and Nokia is based in Espoo, Finland.

The companies said in a joint release that they will also collaborate extensively on research projects, including improving the operating software for mobile devices.

Any breakthroughs there should make the gadgets more attractive to consumers, which would sell more Nokia phones, presumably with Intel chips inside them.

The companies already collaborate on research projects, but Tuesday's announcement signals their intention to build products together. No specific products were announced.