The Short Answer
Kulicke and Soffa stock (KLIC) is qualitatively halal, but the current quantitative screen fails. The April 4, 2026 filing puts liquidity at 41.98% of assets and receivables plus cash at 50.04%, above the examined limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-04; calculated 2026-07-15.
0 / 1,185.984
497.864 / 1,185.984
593.474 / 1,185.984
3.98 / 242.621
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 41.98% and receivables-plus-cash/assets is 50.04%, above the examined FTSE limits; interest income is 1.64%.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 41.98% and receivables-plus-cash/assets is 50.04%, above the examined MSCI total-assets limits; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 41.98%, above the examined Malaysia limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based liquidity and receivables screens already fail.
Business-activity disclosure
Kulicke and Soffa designs semiconductor assembly and packaging equipment used in chip manufacturing. The equipment activity is generally permissible, while customer products, defense-adjacent uses and end uses are not reduced to a universal prohibited-revenue numerator.
Limitation: The filing does not classify every customer, tool or end use by a universal Sharia category; activity remains qualitative.
Purification
KLIC discloses $3.980 million of interest income, but ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Kulicke and Soffa's April 4, 2026 Form 10-Q.
- No interest-bearing debt is reported; operating lease liabilities are excluded.
- Cash is $337.864 million, short-term investments are $150.000 million and investment in debt securities is $10.000 million.
- Accounts and other receivables are $255.610 million and second-quarter revenue is $242.621 million.
- The filing discloses $3.980 million of interest income, or 1.64% of quarterly revenue; no fixed purification percentage is prescribed.
- Semiconductor assembly and packaging equipment is generally permissible, but customer and end-use exposure remains qualitative.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Designing and selling semiconductor assembly and packaging equipment is generally permissible. The company reports no interest-bearing debt, but its cash and investment balances are large; disclosed interest income is 1.64% of quarterly revenue and no universal prohibited-revenue numerator is disclosed.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Kulicke and Soffa's Business Activity
Kulicke and Soffa makes the equipment that packages chips after they are fabricated. Its products include:
- Wire bonders: Equipment that connects chips to packages
- Advanced packaging: Thermo-compression and related systems
- Tools & consumables: Capillaries, spare parts, and aftermarket support
Designing and selling this equipment is permissible at the activity level — it is general-purpose technology infrastructure for chip manufacturing.
Concerns to Be Aware Of
1. Interest Income on Cash
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 returns.
2. Debt Ratio
Kulicke and Soffa typically operates debt-free with a net-cash position, so it comfortably passes the debt screen. Still, confirm the debt-to-market-cap ratio against the 33% threshold at the time of investment.
3. Cyclicality
As a semiconductor-equipment company, revenue is highly cyclical and tied to chip-industry capital spending. This is a business and valuation consideration rather than a Sharia screen concern.
Filing-Based Ratios (April 4, 2026)
Based on Kulicke and Soffa's Form 10-Q:
- Debt / Assets: 0.00%
- Cash + interest-bearing securities / Assets: 41.98%
- Receivables + cash / Assets: 50.04%
- Disclosed interest income / Revenue: 1.64%
Methodology Interpretation
FTSE, MSCI and Malaysia financial screens fail on liquidity and/or receivables. The activity conclusion remains qualitative and no universal prohibited-revenue numerator is disclosed.
Bottom Line
Kulicke and Soffa (KLIC) has a generally permissible core business, but the current overall result fails the examined financial screens because liquidity is 41.98% and receivables plus cash are 50.04% of assets. Apply the methodology you follow and review the company's investment income and customer end uses.
For Muslim investors seeking semiconductor-equipment exposure, KLIC sits alongside other halal-screened names like Axcelis (ACLS) and ASML (ASML).
Want to check if another stock is halal? Use our free screener.
Open Halal Checker →