Microsoft is reported to be seeking for a Taiwanese ODM handset maker in order to deliver a PDA based on its global OS, which will cost less than $300. Citing sources from the community of the Taiwanese makers and vendors, the DigiTimes website reports that Microsoft has already exchanged ideas about the potential project with its major partners in Taiwan, including High Tech Computer (HTC), Quanta Computer, Asustek Computer, Acer, Mitac International, and BenQ, the sources noted.

Microsoft is asking for the support of the Taiwanese makers in an effort to expand its share of the global OS market for mobile devices, an area where the Symbian operating system remains the world's most successful. Windows Mobile market share may further grow next year when Palm will ship its Windows Mobile-based Treo 700w.

Most Taiwan-based makers generally support Microsoft's plan to optimize its mobile operating system, but they said there is still a long way to go before the software vendor and local handset makers can jointly bring down overall production costs for PDA phones.