Does Taiwan Semiconductor Manufacturing Company Limited pass the AAOIFI financial ratio screen?

As of 2026-03-31: interest-bearing debt is 1.6% of market cap (limit < 30%) — pass; cash plus interest-bearing securities is 5.0% (limit < 30%) — pass. The impermissible-income ratio (< 5% limit) also passes. Ratios are recomputed as new filings and prices move.

Is Taiwan Semiconductor Manufacturing Company Limited held in halal ETFs like SPUS or HLAL?

No — as of our last check, Taiwan Semiconductor Manufacturing Company Limited is not held by SPUS or HLAL. Absence can reflect a failed screen or index scope, so we report it as a signal rather than a ruling.

Do I need to purify dividends from Taiwan Semiconductor Manufacturing Company Limited?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash, and the standard practice is to donate the proportional share of dividends attributable to that income. Our purification calculator does this math for your holding.

Is Taiwan Semiconductor Manufacturing Stock Halal? Taiwan Semiconductor Manufacturing Company Limited (TSM) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 1.6% of market cap and cash plus interest-bearing securities 5.0% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified. Reviewed 2026-06-15. Published by HalalWallet.

Is Taiwan Semiconductor Manufacturing Stock Halal?

Q: Is Taiwan Semiconductor Manufacturing Stock Halal?

Halal: Taiwan Semiconductor Manufacturing Company Limited (TSM) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 1.6% of market cap and cash plus interest-bearing securities 5.0% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified. (Financial data as of 2026-03-31; basis: AAOIFI Shariah standards.)

Q: Is Taiwan Semiconductor Manufacturing Company Limited (TSM) stock halal?

Based on our AAOIFI-based screen (data as of 2026-03-31), Taiwan Semiconductor Manufacturing Company Limited passes both the business-activity and financial-ratio screens. A pass is dated — ratios move with the share price — and incidental interest income should be purified.

Q: Is Taiwan Semiconductor Manufacturing Company Limited held in halal ETFs like SPUS or HLAL?

No — as of our last check, Taiwan Semiconductor Manufacturing Company Limited is not held by SPUS or HLAL. Absence can reflect a failed screen or index scope, so we report it as a signal rather than a ruling.

Q: Do I need to purify dividends from Taiwan Semiconductor Manufacturing Company Limited?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash, and the standard practice is to donate the proportional share of dividends attributable to that income. Our purification calculator does this math for your holding.

Taiwan Semiconductor Manufacturing Company Limited · TSM · NYSE

HalalGenerally permissible

Taiwan Semiconductor Manufacturing Company Limited (TSM) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 1.6% of market cap and cash plus interest-bearing securities 5.0% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.

Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-15

Our Analysis

TSMC's business is manufacturing chips for other companies, full stop. Its 2025 results show NT$3,809 billion (roughly US$122 billion) of revenue earned from foundry services, with 58% tied to high-performance computing (the AI buildout) and 29% to smartphones. There is no prohibited industry exposure in the revenue base, so Shariah analysis comes down to financial ratios: like most cash-rich companies, TSMC earns some interest income on its large cash and investment balances, which screeners measure against the AAOIFI tolerance of roughly 5% of revenue, along with low debt ratios.

The most useful professional signal we can verify: the Amana Growth Fund, run by Saturna Capital exclusively under Islamic investment principles, holds TSM ADRs as its single largest position, 7.3% of the fund, as of February 27, 2026. A dedicated Islamic fund making TSM its top holding is strong evidence that it passes institutional Shariah screening. TSM's absence from SPUS and HLAL is not a contrary signal, because those funds track US-only indexes that a Taiwanese company cannot enter regardless of compliance.

For a Muslim investor, TSM is generally regarded as one of the cleaner large-cap names available: a permissible core business, conservative balance sheet, and verifiable inclusion in professional Islamic portfolios. As with all names, the ratio-based part of compliance is a moving target, so confirm the current status in a live screener before investing.

Business Activity Screen

Pass· impermissible revenue ≈ 2.5% (AAOIFI limit < 5%)

Taiwan Semiconductor Manufacturing Company (NYSE ADR: TSM) is the world's largest dedicated semiconductor foundry, manufacturing chips for customers across high-performance computing, smartphone, IoT, automotive, and consumer markets. Per its 2025 annual results (annual report and SEC-furnished consolidated statements), 2025 consolidated net revenue was NT$3,809.05 billion (about US$122 billion per company IR), up 31.6% from 2024, with net income of NT$1,717.88 billion; high-performance computing accounted for 58% of 2025 revenue and smartphones 29%.

Contract chip manufacturing is a permissible business with no haram product lines. TSMC holds large cash and investment balances and reports interest income within non-operating items in its IFRS financial statements; the specific 2025 interest income figure was not verified for this brief (null rather than estimated). TSM is not eligible for the S&P 500 Shariah or FTSE USA Shariah indexes (it is a Taiwanese company), so its absence from SPUS and HLAL is a universe issue, not a screen failure. Notably, Saturna Capital's Amana Growth Fund, which invests only per Islamic principles, held TSM ADRs as its largest position (7.3% of net assets) as of 2026-02-27, which is direct evidence of a professional Islamic screen pass.

Financial Ratio Screen

Screen	Value	AAOIFI limit	Result
Interest-bearing debt / market cap	1.6%	< 30%	Pass
Cash + interest-bearing securities / market cap	5.0%	< 30%	Pass
Impermissible income / total revenueInterest income NT$94.3B on NT$3,848.5B total revenue (TSMC FY2025 Form 20-F, fiscal year ended 2025-12-31) = 2.5% — under 5%. Amounts in New Taiwan dollars as reported.	2.5%	< 5%	Pass

Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.

This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →

How Taiwan Semiconductor Manufacturing screens across Shariah standards

The standards disagree on this company. It passes some Shariah screens and fails others — which is exactly why you may see a different answer in different apps. Our headline verdict uses AAOIFI, the strictest and most widely cited mainstream standard.

Standard	Debt	Cash & interest securities	Limit / basis	Result
AAOIFI (our standard)	1.6%	5.0%	< 30% of market cap	Pass
Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison.	1.6%	5.0%	< 33% of market cap	Pass
MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce.	12.2%	39.1%	< 33.33% of total assets	Fail

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →

These companies pass under some mainstream standards and fail under others — the same pattern as this verdict. That is why two apps can show different answers.

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