KLIC

Kulicke and Soffa Industries, Inc.

HALAL

Score: 88/100

stock

Is KLIC Halal?

Maker of semiconductor assembly and packaging equipment used to manufacture chips — a permissible technology-equipment business with a debt-free, net-cash balance sheet.

What You Should Know

Kulicke and Soffa Industries, Inc. is a publicly-traded company that designs and manufactures semiconductor assembly and packaging equipment — including wire bonders, advanced-packaging and thermo-compression systems, and related tools and consumables — used by chipmakers and assembly houses to package integrated circuits. Designing and selling semiconductor capital equipment is a general-purpose technology activity that is unambiguously permissible at the activity level under standard Sharia methodology; Kulicke and Soffa earns equipment and consumable revenue rather than interest. The company maintains a debt-free balance sheet with a substantial net-cash position, so it comfortably passes the debt-to-market-cap screen; the primary financial-screen consideration is the interest income generated by its cash and investments, a small portion of which should be purified. Subject to verifying ratios at the time of investment, most major Sharia advisory boards classify Kulicke and Soffa as permissible with purification of small interest-income components.

⚠️ Concerns

•Kulicke and Soffa holds a substantial cash and investments balance that generates interest income — verify the interest-income-to-revenue ratio against the 5% threshold and purify the corresponding portion of any returns
•Debt-to-market-cap ratio should be confirmed against the 33% Sharia threshold at the time of investment, though Kulicke and Soffa typically operates debt-free with a net-cash position
•As a semiconductor-equipment company, Kulicke and Soffa's revenue is highly cyclical and tied to chip-industry capital spending — this is a business and valuation consideration rather than a Sharia screen concern
•Receivables-to-assets and inventory ratios should be checked against the preferred board's threshold at the time of investment