Philips announces plan for more than USD 150 million of new investment in manufacturing and R&D in the U.S. to expand production of AI-powered health technology innovations
Global health technology leader, which serves 90% of U.S. hospitals, builds on top of existing U.S. investments to support local manufacturing and more than USD 900 million of annual R&D investment in the U.S.
Aug 14, 2025 | 2 minute read
CAMBRIDGE, Mass. – Philips, a global leader in health technology, today announced a plan for new investments of more than USD 150 million in U.S. manufacturing and research and development (R&D). As part of today’s announcement, Philips unveiled the expansion of its Reedsville, PA manufacturing facility, which produces AI-enabled ultrasound systems for hospitals across the U.S.
These investments come on top of Philips’ annual USD 900 million R&D investment in the U.S. as well as investments in nearly 17,000 colleagues across 40 facilities in the United States. Philips has employees in every U.S. state supporting innovations used by clinicians and patients in 90% of hospitals across the country.
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.
The investment announced today by Philips includes the expansion of its Reedsville, PA site and the recently announced expansion of Philips’ Image Guided Therapy facility in Plymouth, MN. It also includes additional manufacturing and R&D projects which will come over the next several years to support the company’s growth in the U.S. “The proposed planned expansion of our manufacturing facilities is a demonstration of our deep commitment to the U.S. region,” said Jeff DiLullo, Chief Region Leader, Philips North America. “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.” The expansion of the Reedsville site is expected to add 24,000 square feet of manufacturing space in addition to 40,000 square feet of warehouse space and is expected to create 120 skilled manufacturing jobs. 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.
The Reedsville site, which currently manufactures transducers, will also customize the software and configurations of ultrasound systems for specific clinical procedures in cardiovascular, general and maternal care following the expansion. As an example, Philips’ industry-leading CV ultrasound platform delivers advanced tools to help doctors diagnose structural heart and coronary artery disease quickly and confidently [1].
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