NXPI

NXP Semiconductors N.V.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is NXPI Halal?

Semiconductor manufacturing is generally permissible, but March 2026 interest-bearing debt was 43.24% of total assets and fails the examined financial screens.

What You Should Know

NXP's automotive, industrial, mobile and communications semiconductor businesses remain generally permissible at the industry level. Its March 2026 filing reports 11,724 million of debt against 27,113 million of assets, or 43.24%, above the examined FTSE, MSCI and Malaysia total-assets limits. Interest income was 31 million against 3,181 million of quarterly revenue, while end-use revenue remains qualitative.

⚠️ Concerns

  • Interest-bearing debt was 43.24% of total assets
  • NXP has long-term notes, EIB facilities, acquisition and foundry commitments
  • NFC and secure-element chips may enter payment, gaming or lottery infrastructure indirectly
  • Defense, surveillance, export controls, supply-chain labor, energy and water exposure require qualitative review

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-29; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
43.24%Above limit
Below 33.333% under FTSE Yasaar

11,724 / 27,113

Cash + interest-bearing securities / assets
13.68%Within limit
Below 33.333% under FTSE Yasaar

3,708 / 27,113

Receivables + cash / assets
18.05%Within limit
Below 50% under FTSE Yasaar

4,894 / 27,113

Non-compliant income / revenue
0.97%Within limit
No more than 5% under FTSE Yasaar

31 / 3,181

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

Debt/assets is 43.24%, above 33.33%; liquidity/assets is 13.68%, receivables plus cash/assets is 18.05%, and interest income/revenue is 0.97%.

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

Debt/assets is 43.24%, above the examined MSCI limit; liquidity, receivables-plus-cash and the qualitative semiconductor business review do not cure that failure.

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

Debt/assets is 43.24%, above the 33% ratio; this is a calculation against the SAC ratios, not an official SAC classification.

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

No licensed historical market-cap series is stored; the failed asset-based debt screen independently drives the failure.

Business-activity disclosure

NXP designs and supplies semiconductors for automotive, industrial and IoT, mobile, and communication-infrastructure markets. Semiconductor manufacturing is generally permissible, but the filing does not classify end uses such as defense, surveillance, gambling terminals, or other sensitive applications into a universal prohibited-revenue numerator.

Limitation: Revenue is reported by end market and channel, not by contract or customer end use. That prevents a defensible prohibited-revenue percentage even though the debt failure is measurable.

Purification

NXP separately reports 31 of interest income, but the issuer fails the debt-based financial screens and its end-use revenue remains incomplete. ZakatInvest does not prescribe a fixed purification amount or treat purification as a cure for a failed screen.

Inputs, assumptions and primary sources
  • Amounts are USD millions from NXP's March 29, 2026 Form 10-Q.
  • Debt uses total short-term and long-term debt of 11,724, including notes and EIB facilities.
  • Cash uses 3,708 of cash and cash equivalents. Money-market funds are already included in that reported cash balance; no double count is made as securities.
  • No separate interest-bearing securities balance is reported; the 12 of marketable equity securities is excluded from this field.
  • Receivables use net accounts receivable of 1,186 and revenue is 3,181 for the quarter.
  • Interest income is separately reported at 31; interest expense is 114 and other financial income/expense is a net expense of 13.

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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