Taiwan-based vendors Acer and Asustek Computer, in order to minimize production cost, have adopted dual-core processors developed by Taiwan-based MediaTek and China-based WonderMedia Technologies, respectively, for use in their 7-inch tablet models for sale at US$149, with the two IC design houses expected to bring competitive pressure on Qualcomm and Nvidia for platforms used in inexpensive tablets, according to Taiwan-based supply chain makers.

WonderMedia is a subsidiary of Taiwan-based VIA Technologies and focuses on development of ARM-architecture processors.

Acer and Asustek will focus marketing of US$149 tablets mainly in emerging markets including China and India, with Samsung Electronics and China-based Lenovo likely to follow suit, the sources pointed out.

Acer's selection of MediaTek processors and Asustek's that of WonderMedia processors is because costs are significantly lower than those for Qualcomm and Nvidia products while quality and performance are better than those of products developed by China-based IC design houses, the sources indicated.