Intel Fab 28 explosion to disrupt server chip supply for six months

A deadly explosion at Intel's Fab 28 in Israel forced a two-week shutdown expected to cost $600 million. The outage will affect server CPU shipments across two consecutive quarters.

Why it matters: Intel was shifting capacity toward data center CPUs, so losing output at a key fab hits supply just as AI buildouts demand host processors. It may push buyers toward AMD or Nvidia's Vera CPUs, and shows how concentrated chip supply remains.