Ynet reported Sunday, Nov. 1, that operations at Intel’s Fab 28 in Kiryat Gat, Israel, were resuming after a shutdown of about two weeks. At Intel’s Oct. 29 earnings call, CFO Dave Zinsner had forecast a production restart by the end of that week.
The explosion and shutdown
The explosion occurred in mid-October 2026. Tom’s Hardware reported that two workers died and another was seriously injured. Police reportedly suspected a gas-cylinder malfunction, and Ynet said the circumstances remained under investigation.
Intel’s financial forecast
Zinsner forecast about $300 million in revenue impact for Q4 2026 and a similar amount for Q1 2027, or about $600 million across both quarters. Almost all of the Q4 Fab 28 impact was tied to 10nm server products, he said.
Intel separately forecast an approximately 2-percentage-point reduction in Q4 2026 non-GAAP gross margin in its Q3 results release. This is a separate measure from the revenue-impact estimate.
Which processors are in scope?
Intel’s stated product scope centers on 10nm server products. The company did not identify the specific Xeon families included in the estimate. Tom’s Hardware reported that Intel had not disclosed whether the interruption would affect client CPU shipments.
