Acer alluded plans last year of launching a smartphone that will be powered by Intel’s processors. We were about to rest the case when a new report popped out today saying that Intel partnered with Acer to launch a smartphone called Liquid C1 in Bangkok, Thailand. The smartphone is reportedly powered by Intel’s Lexington-based Atom Z240 processor and will retail for 9,990 baht or roughly $335.27.

As to why Intel and Acer opted to launch the Liquid C1 smartphone in Thailand, Uday Marty, Intel’s managing director for Southeast Asia, says that the country is a key market because of its young mobile user audience. The Acer Liquid C1 sports a 4.3-inch screen, an 8-megapixel camera, a 2,000mAH battery, and Android 4.0 Ice Cream Sandwich. Acer is not alone though, as Lenovo is also reportedly brewing its own Intel-powered smartphone, as well Motorola. No word about a U.S. launch was announced.

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