The Short Answer
GlobalFoundries stock (GFS) has a qualitative business verdict that is HALAL and passes the known filing-based financial ratios, but the overall screen remains incomplete. GlobalFoundries is a contract semiconductor foundry that manufactures chips for other companies.
Contract semiconductor manufacturing is generally permissible at the activity level. The December 31, 2025 filing reports debt/assets of 6.71%, liquidity/assets of 23.27% and receivables-plus-cash/assets of 16.99%; disclosed finance income is 2.34% of revenue and activity classification remains incomplete.
Current quantitative Sharia screen
Based on 20-F figures for the period ended 2025-12-31; calculated 2026-07-15.
1,151 / 17,141
3,989 / 17,141
2,913 / 17,141
159 / 6,791
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 6.71%, liquidity/assets is 23.27%, receivables-plus-cash/assets is 16.99% and finance income is 2.34%; activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and receivables-plus-cash ratios pass the examined limits; this is not an index-membership claim and activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and disclosed finance-income ratios pass the examined Malaysia limits; this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; filing-based asset ratios remain documented.
Business-activity disclosure
GlobalFoundries manufactures semiconductors for automotive, communications, mobile, IoT and industrial customers. Contract foundry manufacturing is generally permissible, but the filing does not provide a universal prohibited-revenue numerator for customer end uses.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; customer end-use allocation remains qualitative.
Purification
Finance income of $159 million is disclosed, but no scholar-approved purification percentage is calculated and customer activity is not fully allocated.
Inputs, assumptions and primary sources
- Amounts are USD millions from GLOBALFOUNDRIES' December 31, 2025 Form 20-F.
- Interest-bearing debt is current and non-current long-term debt totaling $1,151 million; lease obligations are excluded.
- Cash is $1,809 million and marketable securities are $2,180 million across current and non-current balances.
- Trade receivables of $1,041 million and unbilled accounts receivable of $63 million are used; government grants, prepayments and other assets are excluded.
- Annual revenue is $6,791 million and disclosed finance income is $159 million, including deposits, FVOCI investments and accretion income (2.34% of revenue).
- Semiconductor foundry activity is generally permissible, but no universal prohibited-revenue numerator is disclosed for customer 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.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
GlobalFoundries' Business Activity
GlobalFoundries provides:
- Contract chip manufacturing: Feature-rich process technologies made to order for fabless designers
- End-market focus: Automotive, smart mobile devices, communications infrastructure, IoT, and industrial
- Specialty processes: Differentiated, non-leading-edge nodes rather than bleeding-edge logic
This is a general-purpose industrial manufacturing business. This is permissible at the activity level.
Concerns to Be Aware Of
1. Leverage — The Primary Screen
The filing reports $1,151 million of long-term debt. ZakatInvest does not substitute a debt-to-market-cap calculation because market capitalization is not part of this filing-based record; the named asset-based screens are shown separately.
2. Interest Income on Cash
The filing reports $159 million of finance income, or 2.34% of revenue. ZakatInvest does not infer a purification amount or prescribe a fixed scholar-approved percentage.
3. Semiconductor Cyclicality
Earnings are sensitive to the semiconductor cycle, fab-utilization rates, and customer concentration in automotive and mobile end-markets. This is a business-cycle consideration rather than a Sharia screen concern.
Filing-Based Ratios (December 31, 2025)
Using GlobalFoundries' latest Form 20-F (USD millions):
- Debt / total assets: 6.71%
- Cash + securities / total assets: 23.27%
- Receivables + cash / total assets: 16.99%
- Finance income / revenue: 2.34%
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Known ratios and finance income pass; activity remains incomplete.
- MSCI-style: Known financial ratios pass; this is not an index-membership claim.
- Malaysia-style: Known debt, liquidity and finance-income ratios pass; this is not an official classification.
Bottom Line
GlobalFoundries (GFS) has a generally permissible foundry business and passes the known filing-based ratios. Because a universal prohibited-revenue numerator is not disclosed, the overall result remains incomplete rather than a universal halal certification; consult the methodology you follow.
For Muslim investors seeking semiconductor exposure, GFS sits alongside other halal-screened names like TSMC (TSM) and ASML.
Want to check if another stock is halal? Use our free screener.
Open Halal Checker →