Sony is making a big bet on smartphones and digital cameras: the company yesterday confirmed earlier reports that it plans to double image sensor production in the near future. Through March 2012, big S is ready to invest a whopping $1.2 billion to expand production facilities for CMOS sensors in Japan.

That sum, which includes the $600 million Sony is paying Toshiba for a plant located in Nagasaki, is aimed at doubling the total output capacity for image sensors to 50,000 wafers monthly by March 2012. The company will also try to fund part of the new investment by applying for a government subsidy plan for companies investing in environmentally friendly businesses.

Sony currently controls about 70% of the world market for image sensors used in digital cameras.