The company is yet to decide upon the offer.
Digital image chip developer, OmniVision, has received a non-binding buy-out proposal from a group of Chinese investors led by Hua Capital Management.
The investors are willing to buy OmniVision for $29 per share, which would value the company at $1.67bn.
OmniVision develops chips for cameras and smartphones, and Apple also uses OmniVision’s chip for its iPhone.
The company is directly competing against Asian tech giants like Samsung, Himax and Sony Technologies.
OmniVision, in its blog, stated that the company’s board of directors are evaluating the proposal, but have not made any decision yet.
If the company accepts the offer, the deal will be scrutinised by the Committee on Foreign Investment in the United States (CFIUS) due to security concerns.
Chinese investment firms have been showing interest in US chip making companies like Montage Technology Group and RDA Microelectronics and in the past.