PIXELWORKS, INC

Pixelworks, Inc. provides industry-leading solutions and technology for content creation, video delivery, and display processing. The company aims to enable authentic viewing experiences with superior visual quality across various screens, from cinema to smartphones. Pixelworks has supplied image processing innovations to major providers of consumer electronics, professional displays, and video streaming services for over 20 years. On January 6, 2026, Pixelworks completed the sale of all its shares in Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. ("PWSH"). This sale involved Pixelworks Semiconductor Technology Company, LLC, a wholly owned subsidiary of Pixelworks, transferring its shares to Tiansui Xinyuan Technology (Shanghai) Co., Ltd. The terms of this sale were outlined in a Purchase Agreement dated October 15, 2025. On the closing date, Pixelworks LLC transferred approximately 29% of PWSH's total outstanding shares to minority shareholders. The selling shareholders then sold all their PWSH shares to the buyer. Pixelworks LLC subsequently sold its remaining shares, representing approximately 49% of PWSH's total outstanding shares, to the buyer. In return, the buyer paid Pixelworks approximately RMB 357 million, which is about $51.0 million in U.S. dollars, after accounting for transaction costs and withholding taxes paid in China.