Intel says Fab 28 explosion will cost $600 million in revenue

Intel anticipates losing approximately $600 million following a blast at its Fab 28 facility located in Kiryat Gat, Israel, earlier in October. CFO Dave Zinsner stated that the financial hit will be divided nearly evenly between the fourth quarter of 2026 and the first quarter of 2027. The vast majority of that decline concerns 10nm server goods.

Image: Hardware Busters

The blast resulted in two fatalities and left a third individual seriously hurt, based on regional accounts. The site has remained closed for roughly a fortnight, although operations are anticipated to resume before the week concludes. The business is currently evaluating which silicon wafers remain functional. The incident led Intel to lower its Q4 non-GAAP gross margin forecast by approximately two points.

Fab 28 manufactures Intel 7, formerly known as 10nm Enhanced SuperFin, alongside other 10nm-tier nodes. These manufacturing methods support fourth- and fifth-generation Xeon Scalable processors as well as the input-output dies on Xeon 6. While Intel has not verified whether Raptor Lake desktop processors face consequences, commentary indicates server deliveries could experience disruptions for roughly half a year.

This announcement arrives alongside a modest financial projection. Intel projected fourth-quarter revenue between $15 billion and $16 billion alongside adjusted earnings amounting to 25 cents per share. During the third quarter, revenue increased 21 percent to $16.51 billion, whereas personal computer chip revenue declined 5 percent to $8.10 billion. Furthermore, Intel elevated its capital expenditure projection for 2026 to $20 billion from $18 billion.