The Short Answer
MCHP is doubtful under the current filing-based screen. Semiconductor products are generally permissible, but March 2026 debt/assets is 38.25%, above the examined asset-based limits.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-13.
5,496.4 / 14,370.1
240.3 / 14,370.1
1,135 / 14,370.1
11.4 / 4,713.1
- Financial
- Fails
- Overall
- Fails
Debt/assets is 38.25%, above the examined 33.333% limit; liquidity/assets is 1.67%, receivables plus cash/assets 7.90% and interest income/revenue is 0.24%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 38.25%, above the examined MSCI 33.33% limit; other identified ratios pass.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 38.25%, above the examined Malaysia SAC 33% limit.
- Financial
- Not calculated
- Overall
- Incomplete
No licensed historical market-cap series is stored.
Business-activity disclosure
Microchip's semiconductor and technology-licensing products are generally permissible. Aerospace and defense end markets are qualitative context, but the filing does not allocate a universal prohibited-revenue numerator by end use.
Limitation: The filing reports product lines and geographies but does not isolate a prohibited-activity percentage for downstream customers or defense applications.
Purification
Microchip reports $11.4 million of interest income; ZakatInvest does not assert a fixed purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Microchip's March 31, 2026 Form 10-K.
- Total assets are $14,370.1 million; cash is $240.3 million; accounts receivable is $894.7 million; long-term debt is $5,496.4 million.
- Fiscal 2026 net sales were $4,713.1 million and interest income was $11.4 million.
- Microchip sells general-purpose microcontrollers, analog, mixed-signal, FPGA, memory and connectivity products across diverse end markets.
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.
Business activity
Microchip designs and sells microcontrollers, analog and mixed-signal ICs, FPGAs, memory and connectivity products across automotive, industrial, communications, consumer, aerospace and defense end markets. The products are general-purpose semiconductors; the filing does not isolate a universal prohibited-revenue numerator.
Financial context
The March 31, 2026 Form 10-K reports $5,496.4 million of long-term debt against $14,370.1 million of assets. Interest income is small relative to revenue, but debt is the binding disclosed financial issue.
Bottom line
MCHP is doubtful while the asset-based debt screen fails. Recheck after the next filing because deleveraging and methodology choice can change the result.