Does anyone knows a I2C multiplexer that could do PWM on the outputs ?
I do not want to do software PWM nor use ATmega/tiny/uC.
Thanks.
I2C multiplexer that could do PWM on the outputs ?
Do you mean port expander rather than multiplexer?
yes :-/
How about the PCA9685, it is designed for controlling LEDs but I don't know where to buy them from.
Thanks for the suggestion but it's hard to find that IC.
A I2C LED driver that supports PWM can also be an options, any others out there ?
Well.. I'm from Portugal, I've looked at RS and Farnell (both of them ship to PT), I don't know if Future will ship here.. so it's a hard to find IC. 
Any other alternatives out there ?
There is the very much used tlc5940 available in pdip package, with libs made for then too, and available as samples in TI site, I have already 9 of then and all free 
There is the very much used tlc5940 available
Yes but the point is that the TLC5940 is not an I2C device and this bloke specifically wants an I2C device.
Let's say that I'll use the TLC as a last resort as it is an SPI device and I should be able to squeeze those pins into the board.
Nevertheless I find the TLC quite expensive (5-6?), for that price I can use another ATmega and code something like a I2C slave that will accept PWM commands over the bus.
If you can get the atmega chip outputting 16 current limit 10bit pwm channels do it..
Using the tlc4951 smd part should be cheaper I think