Philips announced last week that it is investing more than $150 million in the expansion of manufacturing and research facilities in the United States. The investment is focused on scaling up AI-driven innovations in medical imaging and ultrasound, with the aim of further improving the accessibility and effectiveness of healthcare in the US.
The strategic move underscores Philips' continued commitment to the North American market and is in line with broader policy goals to strengthen domestic manufacturing capacity. A significant portion of the investment will be used to expand facilities in Reedsville, Pennsylvania, and Plymouth, Minnesota.
AI ultrasound systems
AI-assisted ultrasound systems are being developed in Reedsville for use in hospitals across the country. Plymouth will gain a centre for image-guided therapies, including a new medical technology training centre.
‘The expansion of our manufacturing and R&D capabilities in the US reflects our long-standing commitment to innovation in healthcare,’ said Jeff DiLullo, Chief Region Leader of Philips North America. ‘We are creating high-quality jobs, strengthening the local economy and bringing advanced healthcare solutions to patients faster.’
More than 1 billion
The investment is in addition to the $900 million Philips already spends annually on R&D in the US. With approximately 17,000 employees across 40 locations in every US state, Philips has a significant impact on the healthcare infrastructure. The company's innovations are currently used in 90% of hospitals in the country.
The Reedsville production site will be modified to develop advanced software and configurations for specific clinical applications, such as cardiovascular care, general diagnostics and obstetrics. Government agencies such as the Department of Veterans Affairs and the Department of Defense are also among the users of these systems.
The expansion in Reedsville is expected to create 120 new jobs in the manufacturing sector. In Plymouth, more than 150 additional jobs are expected to be created thanks to the expansion of the interventional therapy and training facilities. With this investment, Philips confirms its pioneering role in the transformation to a future-proof, data-driven and patient-centric healthcare system.
