Intel Fab 28 explosion kills two, costs $600 million, stalls 10nm Xeon output
Briefing by News4U · First published
An explosion at Intel's Fab 28 near Kiryat Gat, Israel, killed two workers, seriously injured one and forced a two-week shutdown of the facility, according to Toms Hardware. Intel CFO Dave Zinsner said the plant will restart production by the end of this week and that the incident will reduce revenue by about $300 million in both Q4 2026 and Q1 2027, for a total impact of $600 million. The disruption primarily affects 10nm-class server processors, including Xeon 6 I/O dies and prior-generation Xeon 5 and Xeon 4 chips made on the Intel 7 process, and is expected to cut non-GAAP gross margin by about 2% in the fourth quarter. [1]