Is Texas Instruments Stock Halal?
Table of Contents
How much of Texas Instruments’ revenue comes from haram?
Texas Instruments earns its revenue from the following revenue sources:
- Analog:
Texas Instruments provides semiconductors to manage power requirements in electronic systems by converting, distributing, storing, discharging, isolating, and measuring electrical energy.
In addition, Texas Instruments offer signal chain products that sense, condition, and measure signals in devices such as amplifiers, data converters, interface products, motor drives, clocks, and sensing products.
- Embedded Processing:
Includes microcontrollers, digital signal processors, and applications processors.
Microcontrollers control a set of specific tasks for electronic equipment used in industrial and automotive applications.
Digital signal processors perform mathematical computations to process or improve digital data.
Applications processors are designed for specific computing activities.
- Other:
Includes revenue from digital light processing products for projecting high-definition images, calculators, and application-specific integrated circuits (ASICs).
The contributions from each of Texas Instruments’ revenue segments in their Q1 2021 report were as follows:
Practical Islamic Finance concludes:
None of Texas Instruments’ revenue comes from anything inherently haram.
Does Texas Instruments rely on interest to operate?
Texas Instruments reports its Interest Income & Expenses as a net value.
For the Trailing Twelve Months as of March 31, 2021 (Numbers in thousands, U.S. Dollars):
Interest Expense (net): $191,000
Total Expenses: $8,613,000
Interest Expense / Total Expense: 2.22%
Practical Islamic Finance concludes:
Riba is used but not relied upon in Texas Instruments operations.
What is Texas Instruments’ Environmental, Social, and Governance (ESG) impact?
Environment
According to Texas Instruments’ 2020 Corporate Citizenship Report, Texas Instruments has diverted 258,367 pounds of electronic waste from landfills since 2015.
In addition, Texas Instruments uses water recirculation units in its facilities on thermal processing equipment to reduce the use of city water.
Social
Texas Instruments has a high Glassdoor rating of 4.2 out of 5.0 from over 3,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Texas Instruments offers its employees the opportunity to buy shares of Texas Instruments at a 15% discount with a maximum of $21,248 (USD) worth of stock per year.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Texas Instruments has a net positive ESG impact.
Comfort Rating
From Texas Instruments’ business, financial, and ESG reviews, Practical Islamic Finance rates Texas Instruments stock as:
Comfortable to invest in from a Halal perspective.
Sources
Corporate Citizenship Report: Sustainability Section – 2020 release