Philips has announced plans to invest more than $150m in U.S. manufacturing and research and development, reinforcing its commitment to expand production of AI-powered health technologies.
Key takeaways:
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$150m+ in new U.S. investment targets manufacturing and R&D to scale AI-enabled health technologies.
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Reedsville, PA and Plymouth, MN expansions boost ultrasound production, software customization, clinician training—and add ~270 new jobs.
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Stronger domestic medtech supply chain: Philips deepens its U.S. footprint (17k employees, 40 sites) alongside $900M/year in U.S. R&D.
The move builds on the company’s existing annual R&D spend of nearly $900m in the U.S., where it already employs around 17,000 people across 40 facilities and supplies innovations used by 90% of U.S. hospitals.
The new investments include an expansion of Philips’ Reedsville, Pennsylvania, facility, which produces AI-enabled ultrasound systems. The site will gain 24,000 square feet of new manufacturing space and 40,000 square feet of warehouse capacity. Beyond manufacturing transducers, the expanded facility will begin customizing ultrasound software and configurations for specific clinical procedures, with applications in cardiovascular, general, and maternal care. This is expected to improve speed and confidence in diagnosing conditions such as structural heart and coronary artery disease.
Philips is also advancing its image-guided therapy operations in Plymouth, Minnesota, where a recently announced expansion includes a new medtech training center. Together, the two projects are expected to create roughly 270 new jobs—120 in skilled manufacturing roles in Reedsville and more than 150 positions in Plymouth.
According to Jeff DiLullo, Chief Region Leader at Philips North America, the investment reflects the company’s commitment to the U.S. market. “Each year, Philips spends $900m 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,” he said.
By expanding U.S. manufacturing capacity in both ultrasound and image-guided therapy, Philips is strengthening the domestic medtech supply chain and accelerating the delivery of AI-enabled tools to clinicians. The investments are designed to bring advanced software customization and training closer to healthcare providers, supporting faster adoption of emerging technologies in hospitals nationwide.
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