- Philips invests $150M to expand AI ultrasound facilities in Pennsylvania and Minnesota.
- Pennsylvania site adds 24,000 ft² manufacturing, 40,000 ft² storage; Minnesota gets training center.
- Expansion supports U.S. growth, job creation, and tariff mitigation amid 17% market share.
Philips will invest $150 million to expand two U.S. sites focused on developing AI ultrasound systems and related AI software. This aligns with their $900 million research and development investment in the United States each year.
The expansion to the Pennsylvania facility, which makes transducers now, will allow the company to develop the software for ultrasound systems used in cardiovascular and maternal care applications. The expansion will allow Philips to also grow its image-guided therapy facility in Minnesota which is also going to fund a new medtech training center.
Both the Pennsylvania site and the Minnesota site are going to add 24,000 square feet of manufacturing space and 40,000 square feet of storage, but the details of Minnesota's size were not disclosed. According to a GlobalData market model from 2024, Philips is in third place as the only company larger than Philips' 17% market share are GE Healthcare (34%) and Siemens (29.4%).
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Philips North America chief region leader Jeff DiLullo said that these expansions are clear evidence of Phillips' commitment to the U.S. At Philips, we continue to expand jobs and our organization to stay ahead in AI-enabled solutions in health care.
DiLullo added that these expansion plans would insulate Philips from unexpected U.S. tariffs, especially on China where Philips has a number of R&D and manufacturing sites.
In July 2025, Philips revised its 2025 China-related tariff impact estimate from €250m-€300m ($292.1m-$350.5m) down to €150m-€200m ($175.2m-$233.6m). CFO Charlotte Hanneman has suggested some progress has been made in optimizing supplier networks and manufacturing locations.