Intel's Fab 28 explosion to cost about $600 million in lost revenue

Intel expects roughly $300 million in lost revenue in each of Q4 2026 and Q1 2027, with most of the Q4 hit tied to 10nm server processors.

An explosion in mid-October at Intel's Fab 28 near Kiryat Gat, Israel, killed two people and seriously injured one, and forced the whole facility offline for about two weeks. Intel's CFO said on the earnings call that production was expected to restart by the end of the week. The company estimates roughly $300 million of revenue lost in each of Q4 2026 and Q1 2027, about $600 million in total, with almost all of the Q4 hit tied to 10nm-class server processors. Wafers that were mid-fabrication at the time are being assessed, and any that cannot be recovered will be written off, which should trim non-GAAP gross margin by around 2 percentage points in Q4. Intel has not said which Xeon families are affected, how many wafers were lost, or when output will return to full capacity. Because Intel is already struggling to meet strong server demand and other fabs may not be able to take over the work quickly, the shortfall could persist, and it is unclear whether client chips built on the same node are also hit.