How much of Taiwan Semiconductor’s revenue comes from haram?

Taiwan Semiconductor provides contract manufacturing solutions for semiconductors based on its customers’ proprietary integrated circuit designs.

The following table presents a breakdown of Taiwan Semiconductor’s net revenue by category per its 2020 Annual Report:  

Practical Islamic Finance concludes:

None of Taiwan Semiconductor’s revenue comes from anything inherently haram.

Does Taiwan Semiconductor rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
9/3/2020
Fiscal year
ended
8/29/2019
Interest Income $35,000$321,000$541,200
Total Revenue$26,208,000$47,694,000$35,774,000
Interest Expense $74,100$108,700
Total Expenses$15,635,000$27,533,000$23,296,000
Interest Income / Revenue0.13%0.67%1.51%
Interest Expense / Total Expense0.27%0.47%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in Taiwan Semiconductor’s operations.

What is Taiwan Semiconductor’s Environmental, Social, and Governance (ESG) impact?

Environment

In 2020, Taiwan Semiconductor achieved 100% renewable energy use in its global offices and achieved net-zero greenhouse gas emissions. 

Social

Taiwan Semiconductor has a high Glassdoor rating of 4.0 out of 5.0 from over 700 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Taiwan Semiconductor has a net positive ESG impact.

Comfort Rating

From Taiwan Semiconductor’s business, financial, and ESG reviews, Practical Islamic Finance rates Taiwan Semiconductor stock as:

Comfortable to invest in from a Halal perspective.

Sources

Taiwan Semiconductor 2019 Annual Report

Taiwan Semiconductor 2020 Annual Report   

Taiwan Semiconductor Q2 2021 Quarterly Report

TSMC Wiki 

TSMC 2020 Corporate Social Responsibility Report 

TSMC Reviews