Thermo Fisher commits US $2B to expand U.S. manufacturing

USA – Thermo Fisher Scientific Inc. has announced a US $2 billion investment over the next four years to bolster its U.S. manufacturing and research capabilities.

This strategic move aims to mitigate risks associated with global trade uncertainties and strengthen the company’s domestic operations. ​

The investment allocates US $1.5 billion towards enhancing existing manufacturing facilities and potentially developing new ones across the United States.

The remaining US $500 million is earmarked for research and development initiatives. Thermo Fisher operates 64 manufacturing sites in the U.S., producing a range of products including analytical instruments, specialty diagnostics, and life sciences solutions. ​

CEO Marc Casper emphasized the company’s commitment to U.S. innovation, stating, “By expanding our U.S. operations, we ensure that life-saving medicines and therapies will continue to be developed and produced in America for decades to come.”​

This expansion comes in response to recent U.S. tariff policies that have made importing goods more challenging, particularly affecting the pharmaceutical sector.

Thermo Fisher anticipates a US $400 million decline in sales from China this year, a market that accounts for approximately 8% of its revenue.

The company is also facing increased costs for components manufactured in China due to these tariffs. ​

Despite these challenges, Thermo Fisher’s stock remained relatively stable, with a slight decrease of 0.4% following the announcement. Investors appear optimistic about the company’s proactive approach to strengthening its U.S. operations. ​

Chief Financial Officer Stephen Williamson noted that the company is exploring ways to adjust its supply chain to reduce reliance on international manufacturing, including identifying opportunities to reposition existing facilities and engage external manufacturing partners. ​

Thermo Fisher’s investment aligns with a broader industry trend of reinforcing domestic manufacturing capabilities.

Other pharmaceutical giants like Roche, Novartis, Johnson & Johnson, and Eli Lilly have also announced significant investments in U.S. infrastructure. ​

Earlier this year, Thermo Fisher acquired Solventum’s purification and filtration business for US $4.1 billion, further expanding its global footprint.

However, the company has also undertaken cost-cutting measures, including workforce reductions at certain U.S. facilities, in response to shifting demand in the drug manufacturing sector.