Is Intel Stock Halal?
Table of Contents
How much of Intel’s revenue comes from haram?
Intel designs, manufactures, and sells technologies for retail, industrial, and consumer uses worldwide.
Intel earns its revenue from the following segments:
- Data Center Group (DCG):
Includes revenue generated from workload-optimized platforms for compute, storage, and network functions
- Internet of Things Group (IOTG):
Includes revenue generated by Intel’s high-performance compute platforms for businesses in various industries, including retailers, manufacturers, health and life sciences, governments, and education providers
- Mobileye:
Includes driving assistance and self-driving solutions
- Non-Volatile Memory Solutions Group (NSG):
Includes memory and storage products
- Programmable Solutions Group (PSG):
Includes programmable semiconductors (primarily Field Programmable Gate Arrays), structured ASICs, and related products
- Client Computing Group (CCG):
Includes hardware components used in desktop and notebook computers.
- All Other:
Includes revenue generated from start-up projects.
The contributions from each of Intel’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of Intel’s revenue comes from anything inherently haram.
Does Intel rely on interest to operate?
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What is Intel’s Environmental, Social, and Governance (ESG) impact?
Environment
According to Intel’s 2020-21 Corporate Responsibility Report, Intel increased its use of renewable energy from 71% to 82% and invested in water restoration projects that restored more than 1.3 billion gallons in 2020.
Social
Intel has an impressively high Glassdoor rating of 4.2 out of 5 from over 20,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
Intel has made several investments in Israeli-based companies, including purchasing Mobileye and Habana Labs, and invested $11 billion on a new Israeli chip plant (including a $1 billion grant given by the Israeli government) in 2019.
In addition, Intel CEO Patrick P. Gelsinger stated he sees a ‘vibrant future’ with Israel for ‘decades to come’.
Practical Islamic Finance concludes:
Intel has a net negative ESG impact.
Comfort Rating
From Intel’s business, financial, and ESG reviews, Practical Islamic Finance rates Intel stock as:
Uncomfortable to invest in from a Halal perspective.
Justification for our rating
As per Human Rights Watch’s report published Apr 27, 2021:
“Israeli authorities methodically privilege Jewish Israelis and discriminate against Palestinians. Laws, policies, and statements by leading Israeli officials make plain that the objective of maintaining Jewish Israeli control over demographics, political power, and land has long guided government policy. In pursuit of this goal, authorities have dispossessed, confined, forcibly separated, and subjugated Palestinians by virtue of their identity to varying degrees of intensity. In certain areas, as described in this report, these deprivations are so severe that they amount to the crimes against humanity of apartheid and persecution.”
You can read the full report here.
Intel’s close relationship with the state of Israel, in light of this state’s well-documented and systemic abuses of basic human rights, makes Practical Islamic Finance uncomfortable investing in it.
Sources
Intel 2020-21 Corporate Responsibility Report
Intel CEO Gelsinger sees ‘vibrant future’ with Israel for ‘decades to come’
Intel to get $1 billion state grant for $11 billion Israel chip plant expansion
A Threshold Crossed: Israeli Authorities and the Crimes of Apartheid and Persecution