Philips Puts $150M into US Manufacturing and R&D

Philips plans to invest over $150 million in US manufacturing and R&D. The investment is aimed at improving its health technology offerings, including diagnostic imaging, image-guided therapy, patient monitoring, and health informatics. The move is part of Philips' strategy to enhance its products and services, ultimately improving people's health outcomes.

Philips, a global leader in health technology, has announced a significant investment plan of over $150 million in U.S. manufacturing and research and development (R&D). This investment is part of the company's broader strategy to enhance its health technology offerings, including diagnostic imaging, image-guided therapy, patient monitoring, and health informatics. The move aims to improve the company's products and services, ultimately contributing to better health outcomes for patients.

The investment includes the expansion of Philips' Reedsville, PA, manufacturing facility, which currently produces AI-enabled ultrasound systems for hospitals across the U.S. The expansion is expected to add 24,000 square feet of manufacturing space and 40,000 square feet of warehouse space, creating 120 skilled manufacturing jobs. Additionally, the recently announced expansion of Philips' Image Guided Therapy facility in Plymouth, MN, which includes the construction of a new medtech training center, is expected to create over 150 new jobs.

Philips' commitment to the U.S. region is further underscored by its annual R&D investment of over $900 million in the country. The company employs nearly 17,000 colleagues across 40 facilities in the United States, supporting innovations used by clinicians and patients in 90% of hospitals across the country.

Jeff DiLullo, Chief Region Leader, Philips North America, stated, "The proposed planned expansion of our manufacturing facilities is a demonstration of our deep commitment to the U.S. region. 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. 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 Philips' broader mission to improve people's health and well-being through meaningful innovation. The company's patient- and people-centric innovation leverages advanced technology and deep clinical and consumer insights to deliver personal health solutions for consumers and professional health solutions for healthcare providers and their patients in the hospital and the home.

References:
[1] https://www.morningstar.com/news/business-wire/20250814401958/philips-announces-plan-for-more-than-usd-150-million-of-new-investment-in-manufacturing-and-rd-in-the-us-to-expand-production-of-ai-powered-health-technology-innovations
[2] https://www.roche.com/innovation/structure/diascience