It could well be another design win for the Nvidia team as Asus is rumoured to be planning to use the Nvidia Tegra 3 chipset rather than the Qualcomm Krait S4.
According to Nicole Scott from Netbooknews.com (citing an anonymous source), the Padfone will be powered by Nvidia's quad core monster, the same that equips the Asus Eee Pad Transformer Prime and runs at 1.3GHz.
The Padfone was presented earlier this year at Computex in Taipei and proved to be an intriguing rather than ground-breaking combination.
A GLBenchmark entry lead commentators to speculate that the chipset which would power the Padfone would be a Qualcomm dual core chipset (clocked at 1.6 or 1.7GHz).
The Padfone is expected to be a hybrid tablet and smartphone, where the smartphone provides the hardware essential to power the tablet.
It is in fact a variation on the Motorla Atrix docking station, except that the Padfone tablet allows you to use the phone's internal storage and OS (as well as camera) rather than creating a new webtop.
Still, we're not sold on the PadFone idea. Yes it does cut the price of data usage but then, given that most decent handsets now allow tethering, it might be a hassle to get a handset in and out of a shell.