Finance chief David Zinsner forecasts a $300 million revenue loss and a 200-basis-point gross-margin cut in Q4 2026, with a similar revenue loss in Q1 2027, as Intel assesses which wafers it can salvage.
Intel CFO David Zinsner estimates that the Kiryat Gat factory explosion will cost roughly $600 million in revenue across Q4 2026 and Q1 2027. He described the assessment as preliminary and outlined the losses in an interview with Reuters.
The October 2026 explosion at the plant in Israel killed 2 people and seriously injured 1, local media reports cited by Reuters said. Zinsner said the factory had been shut for about 2 weeks.
The factory mainly produces data center chips using Intel’s 10-nanometer manufacturing process. Intel CEO Lip-Bu Tan said the shutdown would affect Q4 shipments of those server chips.
| Period | Expected revenue loss |
|---|---|
| Q4 2026 | Approximately $300 million |
| Q1 2027 | A similar loss |
Zinsner also forecasts an approximately 200-basis-point reduction in Q4 gross margin, the share of revenue left after production costs. That is a decrease of 2 percentage points.
He expects most wafer write-offs or scrapping, and the associated margin effects, in Q4. He does not expect significant scrapping in Q1, but stressed that the assessment remained early.
Intel is still checking which wafers—discs on which chips are made—can be salvaged for use and sale after the blast. Zinsner said the results would determine whether the financial impact extended beyond the forecast period.
On 29 October, Zinsner said Intel planned to begin increasing production by the end of that week. He said the company would update its assessment as work continued.
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