PI

Impinj, Inc.

HALAL

Score: 88/100

stock

Is PI Halal?

Designer of RAIN RFID chips, readers, and software that give everyday items a unique digital identity — a permissible technology-hardware business, with leverage as the primary financial-screen consideration.

What You Should Know

Impinj, Inc. is a publicly-traded company that develops a RAIN RFID platform comprising tiny endpoint integrated circuits (tag chips), reader chips and devices, and connectivity software that together assign a unique digital identity to physical items, enabling retailers, logistics firms, and manufacturers to track inventory, reduce loss, and improve supply-chain visibility. Designing and selling identification semiconductors and the associated software and reader hardware is a general-purpose technology activity that is unambiguously permissible at the activity level under standard Sharia methodology. The financial screen is the primary consideration: Impinj has issued convertible senior notes, so the debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment, though the company has reached profitability with strong unit growth. Subject to that verification, most major Sharia advisory boards classify Impinj as permissible with purification of small interest-income components.

⚠️ Concerns

•Debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment — Impinj has issued interest-bearing convertible senior notes; this is the primary Sharia-screening consideration and warrants particular attention
•Convertible notes are interest-bearing instruments — investors who object to any conventional-debt issuance should weigh this even where the debt ratio passes the 33% screen
•As a semiconductor company, Impinj's revenue and margins can be cyclical and sensitive to inventory and retail-demand swings — this is a business consideration rather than a Sharia screen concern
•Interest income from cash balances and the receivables-to-assets ratio should be confirmed against the preferred board's thresholds at the time of investment