How much of ASML Holding’s revenue comes from haram?

ASML develops and manufactures photolithography systems for memory and logic chipmakers and provides software and services that expedite microchip production. 

Practical Islamic Finance concludes:

None of ASML Holding’s revenue comes from anything inherently haram.

Does ASML Holding rely on interest to operate?

Year-to-Date
for period ended
7/4/2021
Fiscal year
ended
12/31/2020
Fiscal year
ended
12/31/2019
Interest Income 8,40011,600
Total Revenue8,384,10013,978,50011,820,000
Interest Expense 21,900 (net)43,40036,600
Total Expenses5,584,5009,927,0009,029,200
Interest Income / Revenue0.06%0.88%
Interest Expense / Total Expense0.39%0.44%0.80%
*Numbers in thousands, Euros

Practical Islamic Finance concludes:

Riba is used but not relied upon in ASML Holding’s operations.

What is ASML Holding’s Environmental, Social, and Governance (ESG) impact?

Environment

In 2020, ASML reached 100% renewable energy use across its operations.

In addition, ASML signed a 10-year power purchase agreement with RWE in 2021 for more than 250 gigawatt-hours of renewable power per year.

Social

ASML has a high Glassdoor rating of 4.2 out of 5.0 from over 1,000 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:

ASML Holding has a net positive ESG impact.

Comfort Rating

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

Comfortable to invest in from a Halal perspective.

Sources

ASML Holding Q2 2021 Report

ASML Holding 2020 Annual Report 

Climate & energy

ASML signs 10-year green power purchase agreement with RWE  

ASML technology | Supplying the semiconductor industry

ASML Reviews