Intel forecasts $600 million revenue loss following Israel plant shutdown
A two-week production suspension at Intel’s Fab 28 facility in Israel is set to impact financial results through early 2027.
Intel CFO Dave Zinsner confirmed that a mid-October explosion at the Fab 28 semiconductor plant in Kiryat Gat, Israel, will result in an estimated $600 million in lost revenue. The facility, which was shut down for approximately two weeks following the incident, is scheduled to resume operations shortly.
The accident on October 14 resulted in two fatalities and one serious injury. Intel stated that the financial impact stems primarily from disruptions to 10nm server processor manufacturing. Consequently, the company expects a 200-basis-point hit to its fourth-quarter gross margin, with further revenue impacts anticipated in the first quarter of 2027.
Intel provided a fourth-quarter revenue forecast of $15 billion to $16 billion, falling short of analyst expectations. Beyond the factory recovery, the company cites a broader PC market slowdown and potential memory shortages as significant headwinds for the coming fiscal year.