Giant global chip maker, Intel, will launch a new type of laptop which will cost less than $1,000. Intel announced the Ultrabook series on Tuesday at Taipei's Computex trade show which has become one of the largest computer and technology fairs in the world. 

Intel defines an Ultrabook as a small notebook with a touch screen for tablet-like features.

The new laptop will be ultra-thin (less than 0.8 inches) and portable with fast booting speed. It will also run for 10 hours on a single charge. Intel will start selling it before Christmas this year. Intel hopes this extremely thin laptop to take over 40 per cent of the market share by end of next year.

The devices will be equipped with Intel's Ivy Bridge, a new generation of chips produced with 22 nanometer manufacturing technology and the 3-D transistor the company introduced early in May.

Intel envisions Ultrabooks bridging the gap between tablets and notebook computers, emphasizing responsiveness, portability, and elegance.

But Mooly Eden, vice president and general manager of Intel's PC Client Group made it clear that Intel was not admitting that they failed in the tablet market by announcing the Ultrabook.

He said the company has put lot of effort to develop its own microprocessors designed for tablets.

Intel's announcement of the Ultrabook also doesn't mean the company is moving its attention away from netbooks, according to Erik Reid, general manager for Intel's mobile platform division.

The first Ultrabook introduced at the Taipei tradeshow where Intel (NASDAQ:INTC) made its announcement was the ASUS UX21 Ultrabook from ASUSTEK Computer Inc.