Is TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 60.6% / 30% | 178.0% / 30% | 16.0% / 30% | 2.78% / 5% | ✗ NOT HALAL |
| DJIM | 60.6% / 33% | 178.0% / 33% | 16.0% / 33% | 2.78% / 5% | ✗ NOT HALAL |
| MSCI | 13.4% / 33% | 39.4% / 33% | 3.6% / 33% | 2.78% / 5% | ✗ NOT HALAL |
| S&P | 60.6% / 33% | 178.0% / 33% | 16.0% / 33% | 2.78% / 5% | ✗ NOT HALAL |
| FTSE | 13.4% / 33% | 39.4% / 33% | 3.6% / 50% | 2.78% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 59.9% | |
| Operating Margin | 53.9% | |
| Net Margin | 45.1% | |
| Return on Equity (ROE) | 35.1% | |
| Return on Assets (ROA) | 16.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $2.3T |
| Free Cash Flow | $992.4B |
| Total Debt | $1.1T |
| Debt-to-Equity | 19.6 |
| Current Ratio | 2.6 |
| Total Assets | $7.9T |
Price & Trading
| Last Close | $326.11 |
| 50-Day MA | $348.35 |
| 200-Day MA | $287.96 |
| Avg Volume | 13.4M |
| Beta | 1.3 |
|
52-Week Range
$134.25
| |
About TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM)
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also involved in providing customer and engineering support services; manufacturing of masks; investment in technology start-up companies; research, designing, developing, manufacturing, packaging, testing, and sale of color filters; and investment activities. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.
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Frequently Asked Questions
Is TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD's debt ratio?
TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD's debt ratio is 60.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 13.4%.
What are TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD's key financial metrics?
TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD has a market capitalization of $1.7T, trailing P/E ratio of 31.5, and revenue of $3.8T. The company maintains a gross margin of 59.9% and a net margin of 45.1%. Return on equity stands at 35.1%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.