Google and Asus are collaborating on a 7-inch co-branded tablet to take on the likes of the Kindle Fire and Nook tablets, according to industry sources. The reports comes via Digitimes, which claims sources revealed Google has been seeking a Taiwanese partner and having ruled out both HTC and Acer, the search giant opted to work with Asus. Benson Lin, Asus\' Corporate Vice President, told TechRadar at MWC 2012 that \"Asus is very close to Google\" and the latest reports look like they\'re about to get even tighter. Original design and product quality Asus impressed Google with its ODM capabilities and focus on creating quality products, the sources claim. Asus is said to be keen to get into bed with Google, as it feels it will help it break into the US tablet market, as well as helping to enhance its future Android products. The sources suggest the reason Google didn\'t go with HTC was due to the Taiwanese firm wanting to take control in development and it not wanting to produce a budget tablet. Acer was ruled out due to its lack of in-house R&D facilities. The rumoured co-branded tablet could make an appearance as early as May, with a competitive price tag of £125-£160 ($199-$249) as it looks to take on the budget end of the market. Asus has stated that it prides itself on being one of the first (if not the first) companies to roll out the latest Google updates and the new 7-inch tablet could also be the first to sport the new Google Play Store.