The Short Answer
SiTime's business activity is qualitatively halal, but its current quantitative asset-based screen fails. The March 31, 2026 filing shows liquidity/assets of 61.00%, receivables plus cash/assets of 42.81% and interest income of 6.44% of revenue.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
0 / 1,292.857
788.664 / 1,292.857
553.473 / 1,292.857
7.31 / 113.567
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 61.00%, receivables-plus-cash/assets is 42.81% and interest income is 6.44%; the liquidity, receivables and income limits fail.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 61.00% and receivables-plus-cash/assets is 42.81%, above the examined MSCI total-assets limits; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 61.00%, above the examined Malaysia 33% limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the liquidity and receivables screens already fail.
Business-activity disclosure
SiTime designs MEMS-based silicon timing products for communications, automotive, AI and industrial systems. Semiconductor activity is generally permissible, while downstream customer and end-use revenue remains qualitative.
Limitation: The filing does not classify customer, sector or end-use revenue by a universal Sharia category.
Purification
SiTime discloses interest income of $7.310 million; ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from SiTime's March 31, 2026 Form 10-Q.
- No interest-bearing debt is reported; operating lease liabilities are excluded.
- Cash and cash equivalents are $498.476 million and held-to-maturity securities are $290.188 million.
- Net accounts receivable is $54.997 million and first-quarter revenue is $113.567 million.
- The filing discloses $7.310 million of interest income, or 6.44% of quarterly revenue.
- MEMS timing semiconductors are generally permissible, but no universal prohibited-revenue numerator is disclosed.
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.
Designing and selling MEMS-based silicon timing chips is generally permissible at the activity level. SiTime reports no interest-bearing debt, but its cash and held-to-maturity securities are high relative to assets; disclosed interest income is 6.44% of quarterly revenue and no universal prohibited-revenue numerator is disclosed.
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)
SiTime's Business Activity
SiTime designs MEMS-based silicon timing products, including:
- Oscillators: Precision timing references that replace legacy quartz crystals
- Clock generators: Timing distribution for complex electronic systems
- Resonators: Core timing components for communications, automotive, and AI
Designing and selling these timing semiconductors is permissible at the activity level — they provide the timing reference for electronic systems across many industries.
Concerns to Be Aware Of
1. Interest Income on Cash
Cash and held-to-maturity securities total $788.664 million, or 61.00% of assets, above the examined liquidity limits. The $7.310 million interest-income figure is 6.44% of quarterly revenue, above the examined FTSE 5% benchmark; ZakatInvest does not prescribe a fixed purification percentage.
2. Debt Ratio
SiTime reports no interest-bearing debt, so debt/assets is 0.00%. That pass does not offset the liquidity, receivables and income failures, and a market-cap denominator is not calculated here.
3. Concentration and Cyclicality
As a specialized semiconductor company with some customer concentration, SiTime's revenue and margins can be cyclical and valuation-sensitive. This is a business consideration rather than a Sharia screen concern.
Filing-Based Ratios (March 31, 2026)
These calculations use SiTime's first-quarter 2026 Form 10-Q and total-assets denominators:
- Debt / assets: 0.00% — passes the examined debt limit
- Cash + securities / assets: 61.00% — fails the examined liquidity limits
- Receivables + cash / assets: 42.81% — fails the examined MSCI limit
- Interest income / revenue: 6.44% — fails the examined FTSE 5% benchmark
Methodology Interpretation
On the stored total-assets calculations, FTSE Yasaar fails on liquidity and income, MSCI Islamic fails on liquidity and receivables, and Malaysia SAC fails on liquidity. These are comparisons with published methodologies, not claims of index membership or an external agency verdict.
Bottom Line
SiTime (SITM) has a generally permissible timing-semiconductor business, but the current filing-based quantitative screen fails because liquidity, receivables and income exceed the examined limits. This is not a universal halal certification; investors should consult a qualified scholar and review updated filings.
For Muslim investors seeking semiconductor exposure, SITM sits alongside other halal-screened names like Rambus (RMBS) and NVIDIA (NVDA).
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