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 Zinsner stated, "We 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 assessing the usable and unusable materials, Intel expects a $300 million impact to Q4 2026, likely similar in Q1 2027.
Fab 28 in Israel has been manufacturing I/O dies for Xeon 6 "Granite Rapids" as well as compute tiles for Xeon 5 "Emerald Rapids" CPUs. The node has been rebranded to Intel 7, but remains essentially 10 nm technology. Two weeks of downtime destroys months of production, as leading-edge nodes take roughly six months to complete a wafer from start to finish, resulting in significant losses spread over two quarters.
Source: TechPowerUp News · Summarized by HeadlinesBriefing