Is Taiwan Semiconductor Stock Halal?
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