Rumors are rife that internet giant Google is planning to launch a 7-inch tablet co-branded with Asus.

DigiTimes, the Taipei-based publication informed on Thursday that some unverified source from the upstream supply chain has claimed that shipments of 600,000 units of the Google and Asus tablet will begin in June in preparation for a July launch.

"Google originally planned to release its entry-level 7-inch tablet PC in May, but design and costs did not reach its expectations, and the product was delayed to July for some minor adjustments," DigiTimes reported.

Earlier, the website claimed Google's co-branded tablet would be in the low-end price range and compete directly with Amazon's Kindle Fire.

According to some previous report from NPD DisplaySearch analyst Richard Shim to CNET, Google is already in process of producing a 7-inch Google tablet. And the latest claim of two million units shipment is also at par with the DisplaySearch's original estimate.

Various sources have also confirmed that Google's decision of going with Asus to produce tablet is due to the latter's "ODM capability and good product quality."

Asus, reportedly, also has an internal goal for itself of shipping more tablets than netbooks in 2012.

Meanwhile, Google has finally closed the $12.5 billion deal, nine months after it announced to broaden its horizon by foraying into the cellphone business. Now with this most expensive and riskiest acquisition in its 14-year history, Google will be in charge of a major smartphone, tablet and set-top box maker and will own a portfolio of useful patents.