Intel Fab 28 Shutdown to Cost $600 Million in Lost Revenue, Production

Intel's global foundry operations are crucial to the company's revenue generation, and impacting any part of the supply chain directly harms the business. When explosions occurred at Fab 28 in Kiryat Gat, Israel, Intel's operations there briefly halted 10 nm node production for two weeks. During this time, the assessment of both equipment and production output is estimated to result in about $300 million of lost revenue in the upcoming Q4 2026, as well as another $300 million in Q1 2027. Just two weeks of downtime has destroyed a massive amount of 10 nm wafers that Fab 28 has been manufacturing.

Intel CFO David ZinsnerWe have been shut down for about two weeks. We feel like we are going to be starting up production here by the end of this week. While we are doing that, we are trying to assess all the wafers that are in the line and what is usable and what is not usable from those materials. This is somewhat of an early assessment, both really of 4Q and of 1Q. But I think the current thinking is that we will have about a $300 million impact to the fourth quarter. That is likely to be similar in the first quarter.

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