SMG

Semtech Corp.

HALAL — SCREEN DOES NOT PASSstock

Is SMG Halal?

Semiconductor manufacturer — analog and mixed-signal chips.

What You Should Know

Semtech's April 2026 filing reports $1,438.943 million of assets, $491.982 million of debt, $163.310 million of cash and $291.018 million of quarterly sales. Debt/assets is 34.19%, just above the examined one-third limits, while the semiconductor activity remains generally permissible but downstream end uses are qualitative.

⚠️ Concerns

  • Debt/assets is 34.19% under the examined asset screen
  • Industrial, communications and data-center products have unallocated downstream end uses
  • Disclosed interest income is 0.31% of quarterly revenue

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-04-26; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
34.19%Above limit
Below 33.333% under FTSE Yasaar

491.982 / 1,438.943

Cash + interest-bearing securities / assets
11.35%Within limit
Below 33.333% under FTSE Yasaar

163.31 / 1,438.943

Receivables + cash / assets
23.50%Within limit
Below 50% under FTSE Yasaar

338.099 / 1,438.943

Non-compliant income / revenue
0.31%Within limit
No more than 5% under FTSE Yasaar

0.888 / 291.018

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

Debt/assets is 34.19%, above the examined 33.333% limit; liquidity/assets is 11.35%, receivables-plus-cash/assets is 23.50% and interest income is 0.31% of quarterly revenue.

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

Debt/assets is 34.19%, above the examined MSCI 33.33% total-assets limit; liquidity/assets is 11.35% and receivables-plus-cash/assets is 23.50%.

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

Debt/assets is 34.19%, above the examined Malaysia 33% limit; this is a calculation against SAC ratios, not an official classification of a U.S.-listed security.

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

A licensed historical market-cap series is not stored; the asset-based financial screen already fails on debt.

Business-activity disclosure

Semtech designs analog and mixed-signal semiconductors, connectivity devices and infrastructure products. The core industrial and communications activity is generally permissible.

Limitation: The filing does not allocate revenue by every defense, surveillance, gambling or other downstream end use, so a strict activity screen remains qualitative.

Purification

Interest income is disclosed at $0.888 million, but no scholar-approved purification percentage is calculated.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Semtech's April 26, 2026 Form 10-Q.
  • Interest-bearing debt uses reported long-term debt of $491.982 million; the balance sheet did not show a separate current debt balance.
  • Cash is $163.310 million and no available-for-sale securities balance was reported at April 26, 2026; net accounts receivable is $174.789 million.
  • Quarterly net sales are $291.018 million and disclosed interest income is $0.888 million.

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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