United Technologies agreed on November 18, 1998, to sell its United Technologies Microelectronics Center (UTMC) to Aeroflex for $46 million in cash. The sale was intended to move UTC out of a specialized integrated-circuit operation while adding chip capabilities to Aeroflex’s microelectronics business, particularly for satellite communications. Contemporary reports said closing was expected in early 1999, subject to a final agreement and government approval; they do not confirm that it closed.
What United Technologies agreed to sell
The asset was UTMC, UTC’s integrated-circuit business unit based in Colorado Springs. UTC created the center in 1980 after acquiring Mostek, as part of an effort to become a major semiconductor company. After heavy losses in dynamic random-access memory (DRAM), UTC withdrew from commercial chip markets in the 1980s, but UTMC continued supplying specialized circuits for defense and aerospace customers.
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EDN reported that UTMC had generated $34 million in IC sales in the preceding year. That figure describes the operation’s reported sales, not the purchase price or a valuation of the business.
Why UTC sold UTMC to Aeroflex
The transaction marked UTC’s exit from this remaining semiconductor operation, while Aeroflex saw a way to broaden what it could supply to communications-platform customers. Aeroflex executive vice president and chief operating officer Leonard Borow said the addition would support its strategy to provide more content in communications platforms, primarily satellite communications. He said UTMC’s intellectual property would let Aeroflex offer silicon-based integrated circuits alongside the microelectronic modules and interconnects it already supplied.
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How much Aeroflex agreed to pay
The announced consideration was $46 million in cash, according to contemporaneous reports by EDN and EE Times. The reports described an agreement to sell; they should not be read as confirmation that the transaction later closed.
What UTMC made
UTMC supplied semicustom and standard very-large-scale integration (VLSI) circuits for defense and aerospace applications. Its products included devices for MIL-STD-1553, a military data-bus standard, and radiation-hardened components designed for use in environments where radiation can disrupt or damage ordinary electronics.
Those capabilities fit specialized systems rather than the broad commercial chip market UTC had left. Radiation tolerance and support for a military bus standard addressed demanding mission and integration needs; semicustom and standard products offered different levels of tailoring.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Did the sale close in 1999?
EDN reported on November 18, 1998, that closing was expected in early 1999, after a final agreement and government approval. The cited contemporary reports establish the planned timing and conditions, but not the actual closing date. Without a later confirming source, it is not accurate to state that the sale definitely closed in 1999.
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