Taiwan's top electronics parts maker Hon Hai said on Tuesday it had several projects to build low-cost PCs using UK-listed chip designer ARM Holdings' chips.

We have a few smart book projects and I think there is demand for these sub-$200 devices, Young Liu, special assistant to the CEO at Hon Hai, told reporters on the sidelines of an Intel event in Taipei.

The PCs were likely to run on the open source Linux operating system, he added. Hon Hai also assembles PCs for global brands.

(Reporting by Kelvin Soh, Editing by Jonathan Hopfner)