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 / Revenue | 0.13% | 0.67% | 1.51% |
| Interest Expense / Total Expense | – | 0.27% | 0.47% |
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