Canon is to double its production of CMOS imaging sensors by building a new factory in Japan to meet rising demand for digital SLRs, according to numerous press reports.

Canon?s European office is yet to comment on the articles which stem from publications such as Japanese newspaper the Nikkei.

Canon is reported to be planning to build the new ¥55 billion factory in Kawasaki, Japan.

It will be ready by July 2008, state the reports which add that Canon plans to incorporate CMOS sensors into compact cameras, in addition to DSLRs.

It is understood that the factory will be capable of making enough CMOS sensors to equip around 3m DSLRs.

The news comes days after Nikon confirmed that it will increase production of digital SLRs and lenses in Thailand.

The expansion would raise Nikon?s DSLR production from 290,000 per month to 300,000, for the year ending 31 March 2008.

Production of Nikon interchangeable lenses is also set to rise to 300,000 per month, from the 290,000 monthly output for the year to March 2007.

Click on our stories below, as the Canon v Nikon DSLR race hots up:

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