TSM
Taiwan Semiconductor Manufacturing Co. (TSMC)
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.
1,057,259,480 / 8,660,949,685
3,445,585,724 / 8,660,949,685
3,400,327,176 / 8,660,949,685
28,862,263 / 1,134,103,440
- 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%.
- 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.
- 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.
- 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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