PIXELWORKS, INC 8-K

What Happened
Pixelworks, Inc. announced on January 6, 2026 that it completed the previously disclosed sale of Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. (PWSH). The buyer was Tiansui Xinyuan Technology (Shanghai) Co., Ltd. The Company received approximately RMB 357 million (about $51.0 million USD), net of transaction costs and withholding taxes paid in China.

Key Details

• Closing date: January 6, 2026.
• Buyer: Tiansui Xinyuan Technology (Shanghai) Co., Ltd.
• Net proceeds to Pixelworks: RMB 357 million ($51.0 million USD).
• Ownership transfers: Pixelworks’ wholly owned subsidiary (Pixelworks Semiconductor Technology Company, LLC) transferred ~29% of PWSH shares to minority shareholders and sold its remaining ~49% to the buyer; other selling shareholders sold their shares to the buyer.
• Escrow and expenses: RMB 8.7 million ($1.2M USD) held in escrow for Chinese tax matters; additional transaction expenses expected to total ~ $1.0M USD (excluding any compensation payable to executive officers or employees).
• The company issued a press release about the closing (attached as Exhibit 99.1 to the filing).

Why It Matters
The sale delivers immediate net cash proceeds of about $51M to Pixelworks and removes the company’s ownership stake in its Shanghai semiconductor subsidiary, reducing its operational exposure in that business. Investors should note the escrow holdback ($1.2M) for tax matters and expected additional transaction costs ($1.0M), which reduce net cash available in the near term. Further transaction terms and prior agreements are referenced in the company’s earlier 8-K and proxy filings.