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 / 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 

Sign up for our newsletter and receive our “Beginner’s Guide to Halal Investing in Stocks” for FREE!

Enter your email address to subscribe:*