PWM to voltage conversion in Pixhawk (PX4)

Hi all. I am using a Pixhawk 2.4.8 with FMUv2.5 with SBUS receiver. Looking the schematic I have understood that the the TXS0108QFN20 is responsible for the servo outputs. This chip is a level shifter/ voltage translator. I am trying to understand how the PWM values in microseconds are converted to voltage levels for this chip to set the actuator outputs. Is this something done in the code or is it a hardware thing? Any leads will be appreciated.

Thanks in advance.