June 3 (Bloomberg) -- Intel Corp., whose processors run more than 70 percent of the world's personal computers, is showing off notebook PCs this week that use its Atom chips, which allow customers to offer less expensive models.

Companies including Toshiba Corp. and Asustek Computer Inc. are displaying at least 10 PCs that use the design at the Computex show in Taipei, Erik Reid, Intel's director of mobile platforms, said on a conference call late yesterday.

PC makers that use the Atom chips, which consume less power, can offer portable models for as low as $250, or less than 25 percent of the usual cost. Intel has made chips more affordable to target ``the next billion users,'' many of whom are in developing countries, Reid said.

``In the emerging market, the majority of households do not have a PC today,'' Reid said. ``We see this as an opportunity for first-time buyers.''

The average price of a notebook computer last quarter was $1,100, according to Framingham, Massachusetts-based researcher IDC. Shipments of low-cost notebook and desktop computers may reach 100 million by 2011, Reid said.

Asustek Chief Executive Officer Jerry Shen, whose cheaper Eee PC model uses an Atom design, said yesterday that low-cost notebook shipments will amount to between 10 million and 15 million laptops this year and his company will account for around half of that market with at least 5 million.

7 Million `Aspire ones'

Acer Inc., the world's second-largest maker of notebooks, expects to sell 7 million of its ``Aspire one'' low-cost laptops this year, rising to as much as 20 million next year, President Gianfranco Lanci said in an interview today.

Intel, based in Santa Clara, California, rose 9 cents to $23.29 at 9:32 a.m. New York time in Nasdaq Stock Market trading. Before today, the shares had fallen 13 percent this year, whereas the Philadelphia Semiconductor Index is little changed.

Atom processors for the portable machines will cost $44 each when bought in batches of 1,000 units, while those for desktops will be $29. Intel's most expensive PC processors cost more than $1,000.

Demand for the Atom is higher than Intel anticipated, Bill Calder, a spokesman for the company, said on April 30. Asustek's Shen said yesterday he expects shortages of Atom chips to last until October, citing Intel executives.

``Tightness'' in supply of the Atom will last for ``a couple of months,'' Intel's General Manager for Nettop and Netbook Computing, Noury Al-Khaledy, said in Taipei today, without being more specific. Supply of the Atom is constrained at the assembly and test stages, he said.

Intel also is releasing new chipsets, the semiconductors that link the processor with other parts of the computer, with improved graphics. Machines with the new chipset are able to handle the latest high-definition Blu-ray video discs, Reid said.