Philips is to open a new production line at its U.K. plant.
The U.S. brand is expected to take over production of the iPhone 5, which has been under development for some time.
The move will give the iPhone brand an overseas presence and help the company boost its sales in the U.N. markets.
“It is an important milestone for the Philips brand,” said Jim Ward, director of product management at Philips.
“We are pleased to have an opportunity to build on the great work that Philips has been doing for consumers for over a decade.”
Philips will continue to produce iPhones and iPads at its headquarters in the UK.