Philips Boosts US Ultrasound Manufacturing with $150m Investment

Philips is investing $150m to expand its US facilities that manufacture AI-based ultrasound systems and software. The Pennsylvania site will add 24,000ft² of manufacturing space and support Philips' growth in the US, while the Minnesota site will add a new training centre. The expansions reflect Philips' commitment to the US and efforts to future-proof operations from unpredictable US tariffs. The company holds a 17% share in the US ultrasound systems market.

Philips, a global leader in health technology, has announced a significant investment of over $150 million in U.S. manufacturing and research and development (R&D). This investment, which is part of the company's broader commitment to the U.S. market, includes the expansion of its Reedsville, Pennsylvania manufacturing facility and the addition of a new training center at its Image Guided Therapy facility in Plymouth, Minnesota.

The Reedsville site, which currently manufactures transducers, will see a 24,000 square foot expansion in manufacturing space and an additional 40,000 square feet in warehouse space. This expansion is expected to create 120 skilled manufacturing jobs. The new training center at the Plymouth site is anticipated to create over 150 new jobs.

These investments come on top of Philips' annual $900 million R&D investment in the U.S. and its investments in nearly 17,000 employees across 40 facilities in the country. Philips' expansion efforts are part of the company's strategy to future-proof its operations from unpredictable U.S. tariffs and to continue its growth in the U.S. market, where it holds a 17% share in the ultrasound systems market.

According to Jeff DiLullo, Chief Region Leader, Philips North America, "The 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 solutions."

This investment aligns with the Trump administration's goals of boosting domestic manufacturing and reducing the country's reliance on foreign goods. The expansion of Philips' manufacturing and R&D capabilities is expected to support the company's growth in the U.S. and contribute to the broader goals of reshoring manufacturing jobs and revitalizing working-class communities.

[1] https://www.usa.philips.com/a-w/about/news/archive/standard/news/press/2025/philips-announces-plan-for-more-than-usd-150-million-of-new-investment-in-manufacturing-and-r-and-d-in-the-us.html
[2] https://www.foxbusiness.com/lifestyle/philips-invest-over-150m-us-manufacturing-research-facilities