SWKS

What You Should Know

Skyworks Solutions, Inc. is a publicly-traded semiconductor company that designs and manufactures radio-frequency (RF) and analog chips — including amplifiers, filters, front-end modules, and connectivity components — used in smartphones, Internet of Things devices, automotive, infrastructure, and industrial systems. Designing and selling RF and analog semiconductors is a general-purpose technology activity that is unambiguously permissible at the activity level under standard Sharia methodology; Skyworks earns product revenue rather than interest. The company operates with low leverage and a strong cash and investments balance, so it comfortably passes the debt-to-market-cap screen; the primary financial-screen consideration is the interest income generated by its cash, a small portion of which should be purified. Subject to verifying ratios at the time of investment, most major Sharia advisory boards classify Skyworks as permissible with purification of small interest-income components.