Expansion of Reedsville Facility

The centerpiece of this investment is the expansion of Philips' Reedsville, Pennsylvania facility, which currently manufactures ultrasound transducers. The expansion will add 24,000 square feet of manufacturing space and 40,000 square feet of warehouse space to the existing site. This growth will enable the facility to not only continue producing transducers but also to customize software and configure ultrasound systems for specific medical procedures.

The expanded Reedsville site will focus on developing AI-enabled ultrasound systems tailored for various medical specialties, including cardiovascular disease and maternal care. This strategic move is expected to create 120 new manufacturing jobs, bolstering the local economy while enhancing Philips' production capabilities.

Investment in AI and R&D

Philips' investment goes beyond physical expansion, with a significant portion allocated to research and development of AI-enabled technologies. Jeff DiLullo, Chief Region Leader for Philips North America, highlighted the company's commitment to innovation, stating, "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."

The focus on AI-enabled solutions is part of Philips' broader strategy to enhance diagnostic accuracy and improve patient care. The company's ultrasound business, in particular, is expected to see growth in the latter half of the year, with CEO Roy Jakobs noting strong order growth and positive reception of new product launches in this segment.

Broader US Manufacturing Strategy

The $150 million investment is part of a larger strategy to strengthen Philips' presence in the United States. In addition to the Reedsville expansion, the company recently announced a $31 million expansion of its operations in Plymouth, Minnesota, focused on its image-guided therapy division. This project includes the construction of a clinician training center and the addition of over 150 jobs.

Philips currently maintains a workforce of 17,000 employees across 40 facilities in every U.S. state, emphasizing its significant footprint in the American healthcare technology landscape. The company's continued investment in U.S. manufacturing and R&D capabilities demonstrates its long-term commitment to the region and its role in advancing healthcare technology globally.