Pixelworks shares surge 11.02% premarket after board approves Shanghai subsidiary sale to reduce debt and refocus on high-margin TrueCut technology.

Pixelworks Inc. surged 11.02% in premarket trading following the announcement that its board approved the sale of its Shanghai subsidiary to Tiansui Xinyuan Technology. The transaction, expected to complete in early 2026, aims to resolve financial obligations and refocus the company on its high-margin TrueCut technology business. The board also adjourned the shareholder meeting to December 31, 2025, to secure broader support for the proposal, which has 98% proxy support but lacks the 67% approval threshold. Shareholders view the sale as a strategic pivot to streamline operations and enhance shareholder value, aligning with the company’s emphasis on transparency and operational efficiency. The absence of shareholder approval requirements and the sale’s potential to reduce capital-intensive liabilities further bolster optimism.