Deadly Intel Fab 28 explosion causes two-week shutdown, to cost $600 million and severely disrupt server chip manufacturing for six months — 10nm Xeon shipments stall during largest shortage in memory
An explosion at Intel's Fab 28 in Israel forced a two-week shutdown, costing the company $600 million over two quarters and severely disrupting server chip manufacturing for six months.
The explosion at Intel's Fab 28 near Kiryat Gat, Israel, earlier this month forced the company to shut down the entire facility for two weeks. This disruption will result in approximately $600 million in lost revenue over two quarters, significantly impacting Intel's operations.
The incident is expected to severely affect server processors manufactured using Intel's 10nm-class process technologies. The company's shipments will be reduced in both the fourth quarter of 2026 and the first quarter of 2027, coinciding with what is being described as the largest shortage in memory.
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