The company intends to ensure that 90 per cent of products for the Chinese market are sourced and assembled in China by 2024 - up from 75 per cent at present and 48 per cent in 2022.
Jakobs took the top job at Philips in 2022 amid a major recall of sleep apnea and respiratory devices. He says managing the recall and its costly aftermath remain his top priority. China, where Philips has operated for 100 years and is known as"Philipu", is the company's second-largest national market after the U.S., accounting for about 13-15 per cent of revenue with 8,000 employees and five production sites.
While Germany has called on companies to"derisk" from China, Netherlands-based Philips will continue to source Chinese components including nuts, bolts, plastics, electronics, monitors and other semi-finished goods for its operations around the world.