TOKYO, Dec 27 (Reuters) - Sony Corp (6758.T) will invest $1.2 billion in the next financial year to double its output of image sensors, taking advantage of brisk demand for digital cameras and smartphones.
The sum includes a deal announced last week to buy back a semiconductor production line from Toshiba Corp (6502.T), which has been estimated by an industry source at 50 billion yen ($600 million).
Sony will take advantage of a Japanese government subsidy for environmentally friendly businesses to help with the investment, it said in a statement but declined to say how much that would be.
It will convert part of the plant in Nagasaki, southern Japan, for the production of CMOS (complementary metal-oxide semiconductor) sensors and invest in wafer processing equipment for CMOS image sensors.
The investment will bring its total production of image sensors, including CCD and CMOS types, to 50,000 units a month by March 2012. (Reporting by Isabel Reynolds; Editing by Edwina Gibbs)