Pixelworks has completed the sale of its shares in Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. to a special purpose entity led by VeriSilicon Microelectronics (Shanghai) Co., Ltd. The transaction resulted in net cash proceeds of approximately RMB 357 million, or about $51 million USD, for Pixelworks after transaction costs and withholding taxes paid in China. An additional RMB 8.7 million, or roughly $1.2 million USD, is being held in escrow pending the resolution of certain tax matters in China. All previous repurchase rights held by prior shareholders of Pixelworks Shanghai have been fully released.

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