The short answer
TSMC (TSM) is HALAL on ZakatInvest's qualitative core-business assessment, but the examined total-assets financial screen is methodology-dependent because fixed-income investments push liquidity and receivables-plus-cash above some total-assets limits. TSMC is a semiconductor foundry rather than a lender or prohibited-product company, while advanced-chip end uses, customer activity and cash-investment treatment still require review.
This is a reproducible research screen, not a fatwa or investment recommendation. Scholars and screening providers can differ on cash equivalents, fixed-income securities, foreign issuers, dual-use technology and market-cap denominators.
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.
Current quantitative screen
The calculations above use TSMC's official filing (SEC-filed first-quarter 2026 consolidated financial statements). Amounts are in New Taiwan dollars thousands and use total assets as the denominator.
- Interest-bearing debt / assets: 12.21%, using NT$1,057,259,480 thousand of current and noncurrent bonds and bank loans.
- Cash and interest-bearing securities / assets: 39.78%, using cash plus disclosed corporate, government/agency and other fixed-income securities.
- Receivables plus cash / assets: 39.26%, using notes and accounts receivable plus related-party receivables and cash.
- Disclosed interest income / sales: 2.54%, using NT$28,862,263 thousand of interest income against NT$1,134,103,440 thousand of first-quarter sales.
The examined FTSE Yasaar, MSCI total-assets and Malaysia SAC calculations fail on liquidity or receivables-plus-cash under the securities treatment stored here. A methodology that treats some short-term fixed-income assets as cash equivalents, or uses a different denominator, can produce a different result. Market-cap methods are not calculated because no licensed historical market-cap series is stored.
What TSMC does
Taiwan Semiconductor Manufacturing Company is a pure-play foundry that provides process technology, wafer fabrication, advanced packaging and design-enablement services to global customers. Its core activity is industrial semiconductor manufacturing, which is generally permissible in principle.
The filing reports broad customer and product activity but does not classify every chip or end use. Semiconductor products can support consumer electronics, data centers, vehicles, medical devices, industrial systems and governmental or dual-use applications; a blanket “zero concern” claim would not be supported by the filing.
Cash, securities and interest treatment
At March 31, 2026, TSMC reported NT$3,035,637,228 thousand of cash and cash equivalents. It also disclosed corporate bonds, government or agency bonds and other fixed-income instruments across amortized-cost and fair-value categories. This record counts NT$409,948,496 thousand of those securities separately; cash-equivalent and scholar-specific treatment can differ.
TSMC reported NT$28,862,263 thousand of interest income, including cash, amortized-cost and fair-value sources. The amount is below the examined FTSE income threshold, but no fixed purification percentage is estimated here.
Qualitative considerations
- Dual-use technology: advanced chips and manufacturing services may support commercial, industrial, governmental and defense applications.
- Customer and geography: export controls, customer concentration, Taiwan risk, Arizona expansion and geopolitical exposure deserve ongoing review.
- Operations: water, energy, chemicals, labor, supplier standards and environmental impact are material ethical questions for semiconductor manufacturing.
- Related parties: sales and investments involving semiconductor design and manufacturing affiliates should be monitored as disclosures change.
The halal verdict
TSM is presented as HALAL on its qualitative semiconductor-manufacturing core, with a methodology-dependent financial result because the examined fixed-income securities treatment fails some total-assets liquidity tests. This is not an official index membership or fatwa. Investors should apply the scholar and methodology they follow and revisit the record when TSMC files new statements or changes its cash, investment or end-market disclosures.
Use the quantitative screen alongside the dual-use, investment and operational analysis, and consult a qualified scholar for your chosen methodology.
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