Deadly Intel Fab 28 explosion halts production for two weeks, costs $600 million

An explosion at Intel's Fab 28 in Kiryat Gat, Israel, killed two people and shut the plant for about two weeks. Intel expects roughly $600 million in lost revenue across Q4 2026 and Q1 2027 and a 2% hit to fourth-quarter gross margin from disrupted 10nm-class server chip output.

• Fab 28 shutdown lasts about two weeks, with production restart expected by end of week
• Revenue impact: about $300 million in Q4 2026 and another $300 million in Q1 2027
• Q4 non-GAAP gross margin to fall roughly 2% on work-in-progress wafer write-offs
• Affected are Intel 7 server parts, including Xeon 6 I/O dies and Xeon 5 Emerald Rapids