Looks like Amazon will have another competitor in the crowded eBook reader market. AUO, a display manufacturer, unveiled what looks like a cross between the Kindle 2 and the Sony eReader PRS 700 recently at a trade show in Taiwan.

It has the same 6-inch black and white screen with 600 x 800 pixel resolution as the Kindle 2 but also offers touch screen capabilities similar to that of the Sony PRS 700.

The most important factor of this device is that it uses the e-paper technology from a company other than the one used in all the Kindle and Sony eBook readers. Sony and Amazon both use E Ink, the leading provider of electronic paper display technologies. AUO uses a company they recently acquired, SiPix, for their eBook reader. The difference isn’t noticeable at all, which could end up giving the Kindle 2 a run for its money.

There isn’t a price set on the device but from looking at the Kindle 2 like specs, it could definitely make a dent in the eBook market overseas where the Kindle 2 is not available at all. For now, AUO will release a Kindle 2 type device in Asian while promising a Kindle DX type device in the near future. When it’ll hit the European and U.S. markets, is still unknown. One thing is for sure, we’ll be waiting for it.

(via dvice.com)