Philips is investing $150m into expanding a pair of US facilities that manufacture its AI-based ultrasound systems and software.
Complementing its existing annual $900m US R&D spend, the medtech giant said the funds’ allocation towards expanding its Pennsylvania facility that produces ultrasound systems would support its ongoing growth in the US.
According to the company, the site currently manufactures transducers but will also work on the configuration of software used in Philips’ ultrasound systems in areas such as cardiovascular and maternal care once the expansion is complete.
Philips is also allocating a portion of the funds towards expanding its image-guided therapy facility in Minnesota.
The Pennsylvania site expansion is expected to add 24,000ft² of manufacturing space and 40,000ft² of storage. The Minnesota site expansion primarily includes the addition of a new medtech training centre, for which the dimensions were unspecified.
According to a GlobalData market model, Philips held a 17% share in the US ultrasound systems market in 2024. The figure puts the company in third place, behind rivals GE Healthcare in poll position and Siemens in second place, with US market share of 34% and 29.4%, respectively.
Stating that the manufacturing facility expansions reflect Philips’ “deep commitment” to the US, Philips North America chief region leader Jeff DiLullo said: “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 facility expansions likely also reflect Philips’ efforts to future-proof and insulate its operations from the unpredictable nature of US President Donald Trump’s tariffs. In particular, his imposition of tariffs on China has fluctuated dramatically throughout the year. Philips has a number of manufacturing sites in the nation, including R&D innovation centres in Shanghai, Suzhou, and Shenzhen. The Dutch business is not the only medtech company to bolster US manufacturing amid tariffs – Thermo Fisher outlaid $2bn worth of investment in April 2025.
In an earnings call with investors following the release of its Q2 2025 financials in July, Philips revealed it was revising its expected China-related tariff impacts for 2025 to between €150m-€200m ($175.2m-$233.6m), down from €250m-€300m ($292.1m-$350.5m) previously.
Philips CFO Charlotte Hanneman said work on its planned tariff mitigation actions was “well underway” and on track: “We’ve made solid progress on midterm initiatives, including supplier network and manufacturing location optimisation.”
According to GlobalData analysis, the use of AI across healthcare is rapidly advancing, with the market projected to reach a $19bn valuation by 2027. Radiology, including ultrasound, has emerged as one of AI’s key application areas – chiefly as a way to drive efficiencies and glean insights that human image evaluation could miss.
