Cambridge, MA â August 14, 2025
Global health technology leader Philips has unveiled plans to invest more than $150 million in expanding its U.S. manufacturing and research and development (R&D) operations. The initiative aims to accelerate the production of AI-powered health technology innovations, strengthen domestic capabilities, and create hundreds of skilled jobs across key facilities.
đ§ Driving Innovation in Healthcare Technology
The investment will support the expansion of Philipsâ manufacturing footprint, particularly at its Reedsville, Pennsylvania site, which produces AI-enabled ultrasound systems for hospitals nationwide. The facility will be upgraded to allow for customized software configurations tailored to specific clinical procedures in cardiovascular, general, and maternal care.
Additionally, Philips is expanding its Image Guided Therapy facility in Plymouth, Minnesota, which will include the construction of a new medtech training center. These developments are expected to create over 270 skilled jobs, including 120 positions in Pennsylvania and 150 in Minnesota.
đŒ Strategic Commitment to U.S. Growth
Philips North America Chief Region Leader Jeff DiLullo emphasized the companyâs long-term commitment to the U.S. market:
âThe proposed planned expansion of our manufacturing facilities is a demonstration of our deep commitment to the U.S. region. 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 solutionsâ.
This latest investment builds on Philipsâ existing U.S. operations, which include:
- 40 facilities across the country
- 17,000 employees
- An annual $900 million R&D spend
- Technologies used in 90% of U.S. hospitals
đ Supporting National Priorities
The move aligns with broader efforts to boost domestic manufacturing and reduce reliance on foreign supply chains. It also reflects growing demand for advanced medical technologies that support faster, more accurate diagnostics and treatment.
Philipsâ AI-enabled platforms are designed to empower healthcare professionals with real-time insights, improving patient outcomes and operational efficiency.
You can read the full announcement on Philipsâ official news center.
