Google's CEO, Eric Schmidt, said that the new Chrome operating system will be initially targeting a new generation of tablet computers to be released towards the end of the year.
Talking at IFA, in Germany, Schmidt confirmed that Chrome OS would be gradually taking over Android OS which is being extensively used in tablet devices such as the Toshiba Folio 100 or the Samsung Galaxy Tab.
Schmidt added that Chrome OS will be "targeted at the netbook space, but because it's free and open source, people will also use it for tablets, But it's too early to say exactly how it will play out and we're looking forward to the partnership announcement's later this year."
It is likely that Android and Chrome OS will merge at some point in the (near) future as it would allow Google to focus on one product rather than divide the market even more.
Google has already has a fragmentation problem with Android which means that new features cannot be readily rolled out across smartphones supporting the OS.
It also puts a question mark on the future of the Open Handset Alliance and Android; bringing another OS in the foray will cause confusion in the marketplace amongst the manufacturers and consumers.