Philips plans $150 million US investment in manufacturing and R&D

Royal Philips (NYSE: PHG) announced plans to invest more than $150 million in U.S. manufacturing and research and development operations to expand production of AI-powered health technology.

The investment includes expansion of the company's Reedsville, Pennsylvania manufacturing facility, which produces AI-enabled ultrasound systems for hospitals. The facility expansion will add 24,000 square feet of manufacturing space and 40,000 square feet of warehouse space, creating 120 skilled manufacturing jobs.

The investment also encompasses the previously announced expansion of Philips' image-guided therapy facility in Plymouth, Minnesota, which includes construction of a new medical technology training center expected to create over 150 jobs.

Currently, the Reedsville site manufactures transducers. Following the expansion, it will also customize software and configurations of ultrasound systems for specific clinical procedures in cardiovascular, general and maternal care.

"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," said Jeff DiLullo, Chief Region Leader for Philips North America.

The new investments build upon Philips' existing annual $900 million R&D investment in the U.S. and operations involving nearly 17,000 employees across 40 facilities nationwide. According to the company, it serves 90% of U.S. hospitals and has employees in every U.S. state.

The Netherlands-based company reported 2024 sales of EUR 18 billion and employs approximately 67,300 people globally with operations in more than 100 countries.

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