A deadly explosion at Intel's Fab 28 in Israel forces a two-week shutdown with an estimated $600 million cost. Server CPU shipments are expected to be affected for two consecutive quarters.

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. Intel now expects the shutdown to cost approximately $600 million in lost revenue over two quarters. The disruption is expected to affect server processors manufactured using Intel's 10nm-class process technologies and will reduce the company's shipments in both the fourth quarter of 2026 and the first quarter of 2027.

"In Israel, we have been shut down for about two weeks," said Dave Zinsner, Intel's chief financial officer, during the company's earnings call. "We feel like we are going to be starting up production here by the end of this week."