A Chinese investment association with the backing of the Chinese government wants to buy the major supplier of iPhone cameras for US$167 million.

OmniVision Technologies, an iPhone camera supplier, said they've received a cash acquisition proposal from a Chinese investment association led by Hua Capital Management Ltd.

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OmniVision is the leading developer of advanced digital imaging solutions and holds the largest market share in camera sensors. Its main customer is Apple, Inc.

It possess an award-winning CMOS imaging technology that empowers superior image quality in today's smartphones, tablets, webcams, notebooks, security and surveillance systems, entertainment devices, automotive and medical imaging systems, and digital still and video cameras.

Media reports said Hua Capital offered to purchase the OmniVision Technologies for US$29 per share in cash with a total value of US$167 million.

It represents a premium of 17.9 percent on the company's closing price on Aug. 13.

OmniVision disclosed that the Chinese investment association is led by Hua Capital Management Ltd. and consists of members from Technology Investment Co. Ltd. and state-owned Shanghai Pudong Science.

OmniVision Technologies, based in California, nabbed a large market share from its competitors in the Chinese market in recent years because of the cheaper product prices and high market demand.

The company said they are still evaluating the offer of the Chinese investment association. OmniVision hired Morgan Stanley as its financial advisor for the deal.

The iPhone camera supplier's major rivals are Himax Technologies Inc., Sony Corporation and Samsung Electronics Company.

TagsiPhone Camera, Apple Inc., iPhone, OmniVision Technologies, Hua Capital Management Ltd.