TER

Teradyne, Inc.

HALAL

Score: 92/100

stock

Is TER Halal?

Semiconductor test equipment and industrial robotics — permissible technology business with clean financial screen.

What You Should Know

Teradyne is a US designer, developer, and manufacturer of automated test equipment (ATE) used by semiconductor manufacturers (Apple, Qualcomm, MediaTek, Broadcom, Analog Devices, Texas Instruments, foundries, OSATs) to test integrated circuits during and after manufacturing. The company also owns industrial-robotics businesses including Universal Robots (collaborative robots) and Mobile Industrial Robots (autonomous mobile robots), plus a wireless-test business (LitePoint) and a system-test business (storage and defense/aerospace test). Semiconductor test equipment and industrial robotics are unambiguously permissible at the activity level. Teradyne operates a software-and-hardware-style balance sheet with cash exceeding debt and strong free-cash-flow generation; the debt-to-market-cap ratio sits well below the 33% Sharia threshold. The qualitative screen passes cleanly across major Sharia advisory boards. Muslim investors should verify the current ratios at their preferred screening platform.

⚠️ Concerns

•A small share of revenue is tied to defense and aerospace test customers via the system-test business (general-purpose test equipment, not weapons systems)
•Minor interest income on substantial cash reserves
•Cyclical exposure to the semiconductor capital-equipment cycle (business-quality consideration rather than Sharia screen concern)
•Customer concentration with a small group of large semiconductor manufacturers