Philips to invest over $150 million in US manufacturing and AI-driven R&D
Business Insight Digest Team
Business Insight Digest Team provides cutting-edge analysis and insights in technology and innovation.
Philips announced plans to invest more than $150 million in US manufacturing and research initiatives, with a focus on AI-powered healthcare solutions. The Dutch medtech firm unveiled the expansion of its Reedsville, Pennsylvania, facility, which produces AI-enabled ultrasound systems for hospitals nationwide.
The investment adds to Philips’ annual $900 million US R&D spending. Recent developments also include expanding its image-guided therapy site in Plymouth, Minnesota. The multi-year plan covers further manufacturing and research projects to support US growth. The Reedsville site, which currently makes transducers, will now also customise software and system configurations for cardiovascular, general, and maternal care procedures.
The expansion will add 24,000 square feet of manufacturing space and 40,000 square feet of warehouse capacity. Philips expects to create 120 skilled manufacturing jobs in Reedsville. The Plymouth expansion is set to add over 150 jobs and will feature a new medtech training centre. Philips North America chief Jeff DiLullo said the investment reflects the company’s deep commitment to the US and its goal of delivering innovative AI-enabled healthcare technology.
The Pennsylvania expansion comes roughly a year after Philips cut hundreds of Respironics jobs in the Pittsburgh area following a large-scale CPAP and BiPAP device recall. Those manufacturing roles were outsourced to a contractor’s facility in Thailand.