Intel Corp (NASDAQ:INTC) shares are trading higher in Tuesday's after-hours session after the company announced a joint venture related to Intel's Fab 34 in Ireland.

What Happened: After the market close on Tuesday, Intel said it entered into a definitive agreement under which Apollo-managed funds and affiliates will lead an investment of $11 billion to acquire a 49% equity interest from Intel in a joint venture entity related to the company's Fab 34.

Fab 34 is Intel's high-volume manufacturing facility designed for wafers using the Intel 4 and Intel 3 process technologies. Intel has invested $18.4 billion in Fab 34 to date.

The transaction with Apollo-managed funds and affiliates represents the company's second co-investment program, which is part of Intel's smart capital strategy that aims to create financial flexibility to accelerate the company's vision.

Intel noted the new transaction will allow it to unlock and redeploy a portion of the investment to other parts of its business while continuing the build-out of Fab 34.

"Intel's agreement with Apollo gives us additional flexibility to execute our strategy as we invest to create the world's most resilient and sustainable semiconductor supply chain. Our investments in leading-edge capacity in the U.S. and Europe will be critical to meet the growing demand for silicon, with the global semiconductor market poised to double over the next five years," said David Zinsner, CFO of Intel.

Under the agreement, the joint venture will have rights to manufacture wafers at Fab 34 to support long-term demand for Intel's products and provide capacity for Intel Foundry customers. Intel will have a 51% controlling interest in the joint venture and retain full ownership and operational control of Fab 34 and its assets. The transaction is expected to close in the second quarter.

INTC Price Action: Intel shares were up 0.57% after hours at $30.20 at the time of publication, according to Benzinga Pro.

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