Pixelworks, Inc. Sells Subsidiary Stake

Pixelworks, Inc. announced on December 20, 2025, that its Board of Directors has authorized management to proceed with the sale of all shares of Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. (PWSH) held by its subsidiary to Tiansui Xinyuan Technology (Shanghai) Co., Ltd. This decision was made after considering factors such as the capital required for PWSH's growth, the potential of the Company's TrueCut business, the resolution of repurchase rights from other PWSH shareholders, and the strategic shift towards focusing on core visual processing technology and a licensing model. The Board determined that shareholder approval is not required for this sale. The company had previously sought shareholder approval and received proxies in favor of the sale. The transaction is expected to close in early January 2026. This move is intended to allow Pixelworks to concentrate on its high-margin technology licensing business.