Philips to Invest $150 Million in U.S. Manufacturing and R&D to Advance AI-Driven Healthcare

Philips Invests $150M in U.S. Expansion

Key Takeaways

• $150 million investment to expand U.S. manufacturing and research facilities.
• Reedsville, PA facility to grow by 24,000 sq. ft. of production space and 40,000 sq. ft. of warehouse space, creating 120 jobs.
• Plymouth, MN site to add a new Image Guided Therapy training center, generating over 150 jobs.
• Builds on $900 million annual U.S. R&D spending and a workforce of 17,000 across 40 U.S. sites.

Strengthening U.S. Manufacturing and Innovation

Philips has announced a new round of investments totaling more than $150 million to expand its manufacturing and research footprint in the United States. The initiative reinforces the company’s position as a major health technology provider to U.S. hospitals, where its solutions are used by clinicians and patients in 90% of facilities nationwide.

The investment covers several projects, including an expansion at the Reedsville, Pennsylvania facility—where ultrasound transducers are manufactured—and a training center at the company’s Image Guided Therapy site in Plymouth, Minnesota.

Expanding the Reedsville Facility

The Reedsville location will undergo a significant upgrade, with 24,000 square feet of new manufacturing space and 40,000 square feet of additional warehouse capacity. The expansion is designed to increase production of AI-enabled ultrasound systems and enable tailored software configurations for a variety of clinical uses, including cardiovascular and maternal care.

This project is expected to bring 120 new skilled manufacturing jobs to the area, supporting both product innovation and local employment growth.

Growth in Minnesota: Image Guided Therapy Training Center

In Plymouth, Minnesota, Philips will expand its Image Guided Therapy facility with the addition of a medical technology training center. This new facility will provide hands-on learning opportunities for clinicians and is projected to generate more than 150 new jobs in the region.

Commitment to U.S. Research and Development

These expansions add to Philips’ ongoing annual investment of $900 million in U.S. research and development. With nearly 17,000 employees across 40 sites nationwide, the company continues to deepen its ties to the U.S. healthcare system, investing in local manufacturing and innovation to support hospitals and clinicians.

Jeff DiLullo, Chief Region Leader for Philips North America, highlighted the broader vision behind these investments:
“The proposed planned expansion of our manufacturing facilities is a demonstration of our deep commitment to the U.S. region. Each year, Philips spends $900 million in R&D in the U.S. to drive innovation and deliver cutting-edge technology that empowers healthcare professionals to diagnose, treat and monitor patients more effectively. Increasing our manufacturing and R&D capabilities will create jobs and accelerate our ability to deliver better care for more people with innovative AI-enabled solutions.”

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