# Intel Kiryat Gat Explosion to Cost $600 Million

October 30, 2026 at 11:00 AM

> An October explosion at Intel's Israel plant killed two and halted production, leading to a projected $600 million revenue loss through 2027.

An explosion at **Intel**'s semiconductor facility in **Kiryat Gat**, **Israel**, 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 **AI** revenue grew 78% to $7.3 billion in Q3, the Kiryat Gat incident adds pressure to the company's manufacturing outlook.


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