WOLF
Wolfspeed, Inc.
Is WOLF Halal?
Silicon-carbide power semiconductors — permissible semiconductor business but the financial screen fails due to extreme leverage and ongoing losses from the new-fab ramp.
What You Should Know
Wolfspeed (formerly Cree, Inc.) is a US designer and manufacturer of silicon-carbide (SiC) and gallium-nitride (GaN) wide-bandgap power semiconductors. The product portfolio includes 150 mm and 200 mm SiC bare-wafer and epitaxy substrates, SiC MOSFETs, SiC Schottky diodes, and SiC power modules for electric-vehicle traction inverters, on-board chargers, DC fast chargers, renewable-energy inverters, industrial motor drives, and aerospace and defense end markets. Wolfspeed divested its lighting and LED-products businesses (the legacy Cree LED business) and the radio-frequency business (sold to MACOM in 2023) to focus exclusively on SiC power. The company is in the middle of a multi-year capital-expenditure cycle ramping the Mohawk Valley (NY) 200 mm SiC fab and the Siler City (NC) materials facility. Silicon-carbide power-semiconductor design and manufacturing are permissible at the activity level. Its March 29, 2026 Form 10-Q reports $3,147.3 million of assets, $1,722.6 million of interest-bearing debt, $695.1 million of cash, $469.7 million of short-term investments, $96.8 million of receivables and $150.2 million of quarterly revenue. Debt/assets is 54.72%, liquidity/assets is 37.00%, receivables-plus-cash/assets is 25.16% and disclosed interest income is 7.26% of revenue, so the examined FTSE, MSCI and Malaysia financial screens fail.
⚠️ Concerns
- •Debt/assets is 54.72% and liquidity/assets is 37.00% in the March 29, 2026 filing, above the examined asset-based limits
- •GAAP and operating losses during the new-fab ramp — financial-health considerations are a Sharia-screen concern at boards that apply receivables and pre-profitability screens
- •Free cash flow has been deeply negative during the capital-expenditure cycle, and the company has required additional financing rounds
- •Some aerospace-and-defense end-market exposure (general-purpose SiC power devices, not weapons systems)
- •Disclosed interest income is 7.26% of quarterly revenue and requires investor-specific purification treatment
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-29; calculated 2026-07-15.
1,722.6 / 3,147.3
1,164.8 / 3,147.3
791.9 / 3,147.3
10.9 / 150.2
- Financial
- Fails
- Overall
- Fails
Debt/assets is 54.72%, liquidity/assets is 37.00% and receivables-plus-cash/assets is 25.16%; interest income is 7.26% of quarterly revenue, so the examined FTSE financial screen fails.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 54.72% and liquidity/assets is 37.00%, both above the examined MSCI total-assets limits; receivables-plus-cash/assets is 25.16%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 54.72% and liquidity/assets is 37.00%, above the examined Malaysia limits; this is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based financial screen already fails on debt and liquidity.
Business-activity disclosure
Wolfspeed designs and manufactures silicon-carbide and gallium-nitride power semiconductors for automotive, industrial, renewable-energy and other general-purpose applications. The core product activity is permissible; defense end-market exposure is secondary and not separately quantified.
Limitation: The filing does not allocate semiconductor revenue by every end market, so a board applying a strict defense-use screen may reach a different qualitative conclusion.
Purification
Interest income is disclosed, but no scholar-approved purification percentage is calculated here.
Inputs, assumptions and primary sources
- Amounts are USD millions from Wolfspeed's March 29, 2026 Form 10-Q.
- Interest-bearing debt includes long-term debt of $922.2 million, convertible notes of $798.3 million and finance leases of $2.1 million.
- Cash is $695.1 million, short-term investments are $469.7 million and net accounts receivable is $96.8 million.
- Quarterly net revenue is $150.2 million; disclosed interest income is $10.9 million for the three months ended March 29, 2026.
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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