An explosion at 's semiconductor facility in , , on October 14 resulted in two fatalities and one serious injury. The accident halted production for two weeks at the plant, which primarily manufactures data center processors using 10 nm tech.
CFO David Zinsner expects the disruption to cut fourth-quarter revenue by $300 million, with a similar impact in Q1 2027. Gross margins are projected to drop by 200 basis points. Intel forecasts Q4 revenue between $15 billion and $16 billion, missing estimates.
The $600 million total loss comes as Intel faces a 5% decline in PC processor revenue and persistent market weakness. While data center and revenue grew 78% to $7.3 billion in Q3, the Kiryat Gat incident adds pressure to the company's manufacturing outlook.