Is TSM halal?
Taiwan Semiconductor Manufactur
Halal
Taiwan Semiconductor Manufactur passed every check under AAOIFI Shariah standard No. 21: no prohibited business activity, and all three financial ratios are within limits.
Checked: 15 October 2026
Exchange
NYSE
Price
412.61
Day
-2.28%
Market cap
$2.17T
Industry
Semiconductors
Sector
Technology
What the company does
TSMC (Taiwan) is the world's largest contract chip maker: it manufactures chips designed by Apple, Nvidia, AMD and others to order. Revenue comes from each wafer produced; at the most advanced nodes (3 nm and below) it has practically no competitor.
What was checked
The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.
Business activity
No prohibited activity
Interest-bearing debt / market cap
limit 30%
Interest-bearing debt $32.91B ÷ 36-month average market cap (estimated) $1240.75B = 2.6%
2.6%
Pass
Cash & investments / market cap
limit 30%
Cash + interest-bearing securities $117.16B ÷ 36-month average market cap (estimated) $1240.75B = 9.4%
9.4%
Pass
Non-compliant income / total revenue
limit 5%
Interest income $3.27B ÷ annual revenue $117.70B (2025) = 2.8%
2.8%
Pass
Figures from the company's filings (2026-06-30), USD. Market cap is a 36-month average (the S&P Shariah index approach), so a one-day price move does not flip the verdict. Today's market cap: $2172.17B.
For information (AAOIFI 3/1 note): cash + receivables are 43.1% of total assets (2026-06-30). AAOIFI recommends tangible assets of at least one third — this figure does not affect the verdict, and other major screeners do not apply it either.
In the lists
- In the S&P 500
- Not in the S&P 500
- Among halal stocks
- 3.18% · #7 of 1454
- Held by funds
- SPWO 20.22% · SPTE 11.24% · UMMA 5.13%
Superinvestors
SEC 13F, 2026 Q3. Up to 45 days delayed.Held by 23 superinvestors · Average reported price: $477.57
- David TepperAppaloosa Management$788.0M10.6%
- David RolfeWedgewood Partners$50.4M10.4%
- Chase ColemanTiger Global Management$2.3B9.7%
- Ruane Cunniff LP$560.1M8.7%
- William Von MuefflingCantillon Capital Management$54.8M8.2%
- Daniel LoebThird Point$219.7M4.7%
Exited this quarter: Duan Yongping
All superinvestor portfolios
Company story
TSMC tarixi: 56 yoshli muhandisning g'oyasi qanday qilib dunyo chiplarining yuragiga aylandi
Read the story
Halal stocks in the same industry
The largest halal stocks in Semiconductors — for comparison.
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Halal is the first question. The second: when to enter?
Our scanner watches 1454 halal stocks around the clock and fires a signal with entry, TP and SL when a technical setup completes. The full signal history — with outcomes — is public.
This is neither investment advice nor a fatwa. Screening is based on public financial statements and AAOIFI standard No. 21; data may lag. For a personal decision consult your own scholar.