Taiwanese electronics manufacturer Quanta Computer is building a Windows-based PDA for Dell, according to a rumour gathering steam on the internet this week.

Taiwanese news website, Digitimes.com, claims to have found a source that revealed that the Dell mobile handset project is codenamed “Fly” and is a handheld using the Windows Mobile 6 Professional platform with HSDPA 3G support. A full QWERTY keyboard is also thought to be on the cards.

Quanta already makes notebooks for Dell but also builds an XDA PDA for O2 and the iPaq for HP. It is known to be working on 3G Windows Mobile platforms.

Speculation began mounting that Dell was looking to move into the mobile space in February, when the computer firm poached Motorola’s handset guru, Ron Garriques, to run its new global consumer group.

Rumours at the time suggested that part of Garriques’ role would be to smooth Dell’s transition into the fiercely competitive mobile space.

Dell made its name by building customised PCs, which it sold direct and it has been suggested the company could use its expertise to good effect in the handset space.