MCHP

Microchip Technology Incorporated

DOUBTFUL — SCREEN DOES NOT PASSstock

Is MCHP Halal?

Semiconductor products are generally permissible, but March 2026 debt/assets is 38.25%, above the examined asset-based limits.

What You Should Know

Microchip's March 31, 2026 Form 10-K reports $14,370.1M of assets, $5,496.4M of long-term debt, $240.3M of cash, $894.7M of receivables and $4,713.1M of fiscal-year net sales. Debt/assets is 38.25%, liquidity/assets 1.67%, receivables plus cash/assets 7.90% and disclosed interest income/revenue is 0.24%. The semiconductor business is generally permissible, while aerospace and defense end markets remain qualitative context rather than a universal prohibited-revenue finding.

⚠️ Concerns

  • Debt/assets is 38.25%, above the examined FTSE Yasaar, MSCI and Malaysia SAC limits
  • Some products serve aerospace and defense customers, although they are general-purpose semiconductors
  • $11.4M of interest income is disclosed; no fixed purification percentage is asserted
  • The filing does not isolate a universal prohibited-revenue numerator

Current quantitative Sharia screen

Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
38.25%Above limit
Below 33.333% under FTSE Yasaar

5,496.4 / 14,370.1

Cash + interest-bearing securities / assets
1.67%Within limit
Below 33.333% under FTSE Yasaar

240.3 / 14,370.1

Receivables + cash / assets
7.90%Within limit
Below 50% under FTSE Yasaar

1,135 / 14,370.1

Non-compliant income / revenue
0.24%Within limit
No more than 5% under FTSE Yasaar

11.4 / 4,713.1

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 38.25%, above the examined 33.333% limit; liquidity/assets is 1.67%, receivables plus cash/assets 7.90% and interest income/revenue is 0.24%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 38.25%, above the examined MSCI 33.33% limit; other identified ratios pass.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 38.25%, above the examined Malaysia SAC 33% limit.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

No licensed historical market-cap series is stored.

Business-activity disclosure

Microchip's semiconductor and technology-licensing products are generally permissible. Aerospace and defense end markets are qualitative context, but the filing does not allocate a universal prohibited-revenue numerator by end use.

Limitation: The filing reports product lines and geographies but does not isolate a prohibited-activity percentage for downstream customers or defense applications.

Purification

Microchip reports $11.4 million of interest income; ZakatInvest does not assert a fixed purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Microchip's March 31, 2026 Form 10-K.
  • Total assets are $14,370.1 million; cash is $240.3 million; accounts receivable is $894.7 million; long-term debt is $5,496.4 million.
  • Fiscal 2026 net sales were $4,713.1 million and interest income was $11.4 million.
  • Microchip sells general-purpose microcontrollers, analog, mixed-signal, FPGA, memory and connectivity products across diverse end markets.

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.

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