Philips to Invest Over $150M to Expand AI Ultrasound Tech

Philips revealed a plan for new investments of over $150 million in U.S. manufacturing and research and development (R&D). As part of the announcement, the company unveiled expansion of its Reedsville, Pa. manufacturing facility, which products artificial intelligence (AI)-enabled ultrasound systems for U.S. hospitals.

In addition, the investment fueled the recent expansion of Philips’ Image Guided Therapy facility in Plymouth, Minn. It also includes further manufacturing and R&D projects that will come over the next few years to support the company’s U.S. growth.

The Reedsville site currently manufactures transducers and will also customize the software and configuration of ultrasounds for clinical procedures in cardiovascular, general and maternal care following the expansion. Expansion of the site will add 24,000 square feet of manufacturing space and 40,000 square feet of warehouse space. It’s expected to create 120 skilled manufacturing jobs, as well.

The image-guided therapy facility’s expansion includes construction of a new medtech training center and is expected to create over 150 new jobs.

“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.”

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 U.S.