According to Digitimes, the tablet is to be unveiled at Google I/O which is a developer event in San Francisco.
The word on the street is that the price will be set at $199 and manufactured by Quanta Computer.
The 7-inch Nexus tablet PC already started shipping in June and is estimated to be available in the retail channel in July with the device's total shipments expected to reach at least three million units in the second half of the year.
The tablet is cheap and cheerful. It does have a wi-fi connection but does not have a back webcam. It will come preloaded with Chrome.
Asustek likes the idea so much that it also plans to release its own 7-inch tablet PC with the price at just $159-179 in August.