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Siemens Healthineers has become the latest company to double-down on investment in the US amid ongoing tariff fallout, outlaying $150m to bring back manufacturing in the country from Mexico.
The latest investment will see the Germany-headquartered giant relocate manufacturing operations for its subsidiary Varian from Baja, Mexico to Palo Alto, California.
Siemens Healthineers, which employs 17,000 people in the US, said the move would add around 50 new jobs in the manufacturing of Varian’s radiotherapy products. Siemens acquired Varian for $26.4bn in April 2021. Varian is known for making a range of devices involved in the cancer treatment space, such as linear accelerators, radiotherapy systems, and diagnostic software.
The expansion to operations in the US, a country responsible for 36% of the company’s global revenue, includes opening “mega supply depots” in New Jersey and California to increase availability of device parts by 33%.
Finally, a new 60,000 square foot building called the Siemens Healthineers Experience Center, will be added to North Carolina’s Pearl, a 26-acre medical innovation district currently under construction. There is already a Siemens Healthineers Experience Center in Forchheim, Germany that offers access to test the company’s portfolio of technology.
"North Carolina is home to some of the leading research and innovation firms in the nation,” said North Carolina Governor Josh Stein.
“Siemens Healthineers’ $141 million investment in the Pearl in Charlotte is the latest in a long line of companies that see the value of our well-trained workforce thanks to advanced health education programs in our state,” Stein added.
Efforts to shore up US manufacturing capabilities come at a time when tariffs implemented by US President Donald Trump have made importing into the country less attractive.
The ongoing trade war has brought instability to many industries, with healthcare being no exception. His sweeping tariffs have disrupted medical device supply chains globally. Levies placed on China have particularly impaired procurement channels with many components of devices made in the Asian country, such as semiconductors. Philips, for example, stated in its Q1 earnings report that it is bracing for a $340m hit due to tariffs.
Siemens Healthineers is one of many companies redirecting resources to the US to make supply chains more robust. In April 2025, Thermo Fisher said it would spend $2bn to expand manufacturing in the US. Investments have been rife in pharma too, with Roche unveiling a $50bn investment strategy in the same month to upgrade three R&D sites in the US. Novartis, Johnson & Johnson and Eli Lilly have also made similar investment announcements.