On October 16, 2025, VeriSilicon Microelectronics (Shanghai) Co., Ltd. (“VeriSilicon”, stock code: 688521.SH) announced its plan, along with other investors, to acquire full control of Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. (“Pixelworks Semiconductor”) using a special purpose vehicle established for the transaction. The total equity value of Pixelworks Semiconductor was valued at CNY 950 million. A share purchase agreement was signed on October 15, 2025. Under the transaction, which closed in 2026 January, VeriSilicon and the other investors made capital contributions to, and capital increases of, the special purpose vehicle. Those contributions included VeriSilicon’s existing 2.11% equity interest in Pixelworks Semiconductor. The special purpose vehicle then paid CNY 930 million in cash (plus transaction costs and related expenses) to acquire the remaining 97.89% stake. As a result, the special purpose vehicle now holds 100% of Pixelworks Semiconductor’s equity. Following transaction completion, Pixelworks Semiconductor has been consolidated into VeriSilicon’s financial statements.
VeriSilicon is a semiconductor company that leverages its proprietary semiconductor IP to provide platform-based, comprehensive, one-stop custom silicon services and semiconductor IP licensing services to its customers. Fangda Partners previously acted as VeriSilicon’s legal counsel in its successful listing on the STAR Market in 2020 and in its non-public offering of A shares to investors in 2025. In this transaction, Fangda again served as VeriSilicon’s legal counsel and was deeply involved throughout the entire transaction process, providing legal services including conducting legal due diligence, drafting and negotiating transaction and financing documents, preparing board and shareholder meeting documents, and drafting related company announcements.
Founded in Shanghai in 2004, Pixelworks Semiconductor was, before the transaction, ultimately controlled by Nasdaq-listed Pixelworks, Inc. Pixelworks Semiconductor focuses on developing and designing visual processing chips for mobile devices, video transcoding chips, and system-on-chips (SoCs), and providing 3LCD projector solutions. It is a leading global provider of innovative video and display processing chips and solutions. As a pioneer in AI-powered independent display chips for smartphones, Pixelworks Semiconductor holds more than 160 invention patents worldwide. Its mobile visual processing chips have been successfully adopted by leading smartphone manufacturers, and its proprietary mobile image processing chips have helped address performance gaps in high-performance, low-power mobile terminals among domestic processors. Pixelworks Semiconductor is currently the world’s leading supplier of SoCs for 3LCD projectors, with a market share exceeding 80%.
The Fangda team was led by partners Chao Huang, Christian Peng and Michael Qi. Team members included counsel Stephen Liu, Yvonne Gan and Ellyn Ai, associates Yanhui Hu, Xiu Zhang, Huiming Duan, May Zhang, Melissa Chen, and paralegal Shuang Li. Senior IP counsel Danae Wu and associate Peilin Guo, as well as employment associate Miao Wang, also provided professional support to the transaction.
