MTSI
MACOM Technology Solutions Holdings, Inc.
Is MTSI Halal?
Analog, RF, and microwave semiconductors for high-performance end markets — permissible semiconductor business.
What You Should Know
MACOM Technology Solutions is a US designer and manufacturer of analog, radio-frequency (RF), microwave, millimeter-wave, photonic, and optoelectronic semiconductor products. Its April 3, 2026 Form 10-Q reports $2,014.577 million of assets, $407.724 million of interest-bearing debt including finance leases and a financing obligation, $98.521 million of cash, $566.337 million of short-term investments, $159.599 million of receivables and $288.955 million of quarterly revenue. Debt/assets is 20.24%, liquidity/assets is 33.00%, receivables-plus-cash/assets is 12.81% and disclosed interest income is 2.69% of revenue; the examined FTSE, MSCI and Malaysia financial ratios pass. Industrial-and-defense revenue was 41.8% of the quarter, so the quantitative result is paired with an incomplete qualitative activity screen rather than an unconditional ruling.
⚠️ Concerns
- •Meaningful aerospace-and-defense end-market revenue share — some strict Sharia advisory boards apply defense-end-market screens that exclude such names even when the products are general-purpose RF and microwave semiconductors
- •Finance leases, financing obligation and convertible-note debt
- •Cyclical exposure to the optical-components and telecom-and-data-center semiconductor cycle
- •Interest income and short-term investments
- •Customer concentration with a small group of large optical-components, data-center, and defense-prime customers
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-03; calculated 2026-07-15.
407.724 / 2,014.577
664.858 / 2,014.577
258.12 / 2,014.577
7.759 / 288.955
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 20.24%, liquidity/assets is 33.00%, receivables-plus-cash/assets is 12.81% and disclosed interest income is 2.69% of revenue; the financial ratios pass, while defense-related activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI total-assets limits; this is not an index-membership claim and activity allocation remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 20.24%, but liquidity/assets is 33.00%, marginally above the examined Malaysia 33% limit; the defense-related activity numerator also remains unavailable. This is a calculation against the named ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; filing-based financial results and activity limitations remain documented.
Business-activity disclosure
MACOM designs and manufactures analog, RF, microwave and photonic semiconductor components. The products are generally permissible, but industrial-and-defense revenue represented 41.8% of quarterly revenue and the filing does not isolate downstream military use.
Limitation: The filing reports market-level revenue rather than a school-neutral prohibited-activity numerator for defense, aerospace, telecom and data-center end uses.
Purification
MACOM discloses $7.759 million of interest income but does not provide a scholar-approved purification percentage or a complete defense-related prohibited-activity numerator.
Inputs, assumptions and primary sources
- Amounts are USD millions converted from MACOM's April 3, 2026 Form 10-Q values reported in thousands.
- Interest-bearing debt combines $340.186 million of long-term debt, $0.668 million of current finance-lease obligations, $30.157 million of long-term finance-lease obligations and a $36.713 million financing obligation; operating lease liabilities are excluded.
- Cash is $98.521 million and short-term investments are $566.337 million, used as the interest-bearing-securities proxy.
- Accounts receivable are $159.599 million net; second-quarter revenue is $288.955 million.
- Disclosed interest income is $7.759 million, or 2.69% of revenue; this is not a scholar-approved purification percentage.
- Analog, RF, microwave and photonic semiconductors are generally permissible products, but industrial-and-defense revenue was 41.8% of the quarter and the downstream defense mix requires qualitative review.
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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