# Intel expects Fab 28 shutdown to cost approximately $600 million in revenue

_Published Friday, October 30, 2026 at 6:06 AM EDT · Products, Infrastructure · Latest · Tier 2 — Notable_

![Intel — Primary](https://cdn.mos.cms.futurecdn.net/LfAMGfgQdrVVWjdQnwewpP-2560-80.jpg)

Intel expects the shutdown of its Fab 28 factory in Israel to reduce revenue by approximately $600 million across Q4 2026 and Q1 2027, primarily affecting server processors made with its 10nm-class manufacturing technology. An explosion in mid-October killed two people, seriously injured one and halted the factory for two weeks.

Chief financial officer Dave Zinsner said production should restart by the end of this week. Intel is assessing unfinished wafers for possible write-offs and expects an approximately 2% reduction in fourth-quarter non-GAAP gross margin. The company has not identified the affected Xeon families or specified when the factory will regain full production capacity.

## Sources

- [Tom's Hardware](https://www.tomshardware.com/pc-components/cpus/deadly-intel-fab-28-explosion-causes-two-week-shutdown-to-cost-usd600-million-and-severely-disrupt-server-chip-manufacturing-for-six-months-10nm-xeon-shipments-stall-during-largest-shortage-in-memory)

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Canonical: https://techandbusiness.org/newswire/svOWfmF4OU6kATR0pmIcHP
Published: 2026-10-30T10:06:18.106Z
Story chronology: 2026-10-30T09:30:00.000Z
Retrieved: 2026-10-30T12:52:29.362Z
Publisher: Tech & Business (techandbusiness.org)