A report from Digitimes suggests that Asus will be teaming up with Intel to make a low-cost, lightweight Google Chrome laptop.

Netbooks have been particularly hard hit by the rise of the tablet, but lower prices could help them compete. The report said that the netbook would be aimed at those who want a device for office work and Internet browsing.

The rumored netbook would undercut tablet prices by a good amount — maybe the only thing that could breathe some life into the dying netbook market. Apple is, for once,  the low-price leader in the tablet market with its iPad 2 starting at $499. Motorola announced a cheaper, wi-fi version of the Xoom yesterday for $599.

There hasn’t been much out there about the Chrome OS since Google unveiled its no-frills Cr-48 laptop in December, so it will interesting to see if Asus moves ahead with this plan.

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