Intel expects Israel fab disruption to weigh on results through first half of 2027
INTC•Intel expects an October accident at its Israel fab to hurt gross profit and operating results from Q4 2026 through the first half of 2027. Operations are expected to resume by October’s end after roughly two weeks of suspension, with inventory write-offs and remediation charges expected.
1. Disruption and demand outlook
Intel expects the October accident at its Israel fab to weigh on gross profit and operating results from Q4 2026 through the first half of 2027. Operations are expected to resume by the end of October after roughly two weeks of suspension; Intel expects inventory write-offs and remediation charges. Third-quarter data center revenue rose 78% to $7.32 billion, while client revenue fell 5%. The company expects strong data center demand to continue, but client demand pressures and substrate and memory shortages to persist into 2027.
