SYNA

Synaptics Incorporated

HALAL

Score: 83/100

stock

Is SYNA Halal?

Designer of human-interface and IoT connectivity semiconductors — a permissible technology business, with leverage as the primary financial-screen consideration.

What You Should Know

Synaptics Incorporated is a publicly-traded semiconductor company that designs human-interface, wireless-connectivity, and edge-AI processing chips — including touch, display, fingerprint, and audio interface products and Wi-Fi, Bluetooth, and GPS connectivity solutions — used in PCs, mobile devices, automotive, and Internet of Things applications. Designing and selling interface and connectivity semiconductors is a general-purpose technology activity that is unambiguously permissible at the activity level under standard Sharia methodology; Synaptics earns product and licensing revenue rather than interest. The financial screen is the primary consideration: Synaptics carries term debt and senior notes, so the debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment. Subject to that verification, most major Sharia advisory boards classify Synaptics 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 — Synaptics carries interest-bearing term debt and senior notes; this is the primary Sharia-screening consideration and warrants particular attention
•Term loans and senior notes are conventional, interest-bearing instruments — investors who object to any such issuance should weigh this even where the debt ratio passes the 33% screen
•As a focused interface-and-connectivity semiconductor company, Synaptics's revenue and margins are cyclical and sensitive to PC, mobile, and IoT end-market demand — this is a business and valuation 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