TSM

Taiwan Semiconductor Manufacturing Co. (TSMC)

HALAL — METHODS DIFFERstock

Is TSM Halal?

Semiconductor foundry core is generally permissible, but fixed-income securities create methodology-dependent liquidity results and end-use allocation is incomplete.

What You Should Know

TSMC provides wafer fabrication, advanced packaging and design-enablement services. Its March 31, 2026 filing reports debt/assets of 12.21%, cash plus fixed-income securities/assets of 39.78%, receivables plus cash/assets of 39.26% and interest income/sales of 2.54%. Customer, dual-use and end-market revenue is not universally allocated.

⚠️ Concerns

  • Cash plus fixed-income securities are 39.78% of total assets under the examined treatment
  • Receivables plus cash are 39.26% of total assets and exceed some total-assets limits
  • Interest income is NT$28.862 billion for the quarter
  • Dual-use chips, export controls, Taiwan risk, energy and water use require continuing review

Current quantitative Sharia screen

Based on 6-K figures for the period ended 2026-03-31; calculated 2026-07-13.

TWD · thousands
Interest-bearing debt / assets
12.21%Within limit
Below 33.333% under FTSE Yasaar

1,057,259,480 / 8,660,949,685

Cash + interest-bearing securities / assets
39.78%Above limit
Below 33.333% under FTSE Yasaar

3,445,585,724 / 8,660,949,685

Receivables + cash / assets
39.26%Within limit
Below 50% under FTSE Yasaar

3,400,327,176 / 8,660,949,685

Non-compliant income / revenue
2.54%Within limit
No more than 5% under FTSE Yasaar

28,862,263 / 1,134,103,440

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

Debt is 12.21%, liquidity is 39.78% and receivables plus cash are 39.26%; liquidity exceeds the examined 33.333% FTSE asset limit. Disclosed interest income is 2.54%.

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

Debt is 12.21%, liquidity is 39.78% and receivables plus cash are 39.26%; liquidity and receivables plus cash exceed the examined MSCI total-assets limits. This is a calculation against the named method, not an index-membership claim.

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

Debt is 12.21%, but liquidity is 39.78%, above the examined Malaysia SAC financial limit. This is a calculation against SAC ratios, not an official classification of a foreign-listed security.

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

A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.

Business-activity disclosure

TSMC is a pure-play semiconductor foundry providing process technology, wafer fabrication, advanced packaging and design enablement services. Semiconductor manufacturing is generally permissible industrial activity, while end-use, customer and dual-use technology questions require continuing qualitative review.

Limitation: The consolidated filing reports broad customer and product activity but does not allocate every chip, customer or end use into a universal prohibited-revenue numerator; no blanket zero-concern claim is made.

Purification

TSMC discloses interest income but does not prescribe a scholar-approved purification percentage. Readers should follow the scholar or methodology they use for treatment.

Inputs, assumptions and primary sources
  • Assets and revenue use the March 31, 2026 TWD consolidated report: total assets of NT$8,660,949,685 thousand and first-quarter net sales of NT$1,134,103,440 thousand.
  • Debt uses the current portion of long-term liabilities, bonds payable and long-term bank loans: NT$156,241,738 + NT$860,026,070 + NT$40,991,672 thousand. Lease liabilities are not entered as conventional debt.
  • Cash uses NT$3,035,637,228 thousand. Interest-bearing securities use disclosed corporate, government/agency and fixed-income instruments classified at amortized cost or debt instruments at FVTOCI, totaling NT$409,948,496 thousand; equity investments are excluded.
  • Receivables use NT$357,742,772 thousand of notes and accounts receivable, NT$5,262,358 thousand due from related parties and NT$1,684,818 thousand of other related-party receivables.
  • TSMC reports NT$28,862,263 thousand of interest income, including cash, amortized-cost and FVTOCI sources. The business filing does not quantify a universal prohibited-revenue numerator for semiconductor end uses.

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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