Asustek Computer Inc plans to launch a new mass-market wireless communications line in China that uses Marvell Technology Group Ltd.
The smartphones, which are aimed at the entry- to mid-level segment of the market, use an integrated chip provided by Marvel.
The devices are run on 3G technology developed in China.
While exact prices were unknown, entry-level phones typically cost less than $300.
Earlier this week, Huawei Devices launched Android-based smartphone IDEOS.
The manufacturer explained that the device offers multiple ways to access the internet and comes pre-loaded with a range of other services, such as YouTube, Google Mail and Gmail.
"Innovation and premium experiences shouldn't be restricted to high-priced devices," commented Huawei Devices marketing director Anand Narang.
"We believe that IDEOS will redefine the Internet experience for Indian youth."