What is Microchip Technology Incorporated's Shariah compliance score?

Microchip Technology Incorporated (MCHP) has a Shariah compliance score of 90/100 (Grade: A+, Excellent) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Microchip Technology Incorporated pass AAOIFI screening?

Microchip Technology Incorporated (MCHP) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (MCHP: 10.4%), (3) interest-bearing deposits below 30% (MCHP: 1.4%), and (4) prohibited income below 5% (MCHP: 0.1%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Microchip Technology Incorporated stock?

Microchip Technology Incorporated (MCHP) has a non-permissible income ratio of 0.10%. Muslim investors should purify this percentage of any dividends received and capital gains realized from MCHP shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Microchip Technology Incorporated for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Microchip Technology Incorporated (MCHP) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about MCHP's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

Is Microchip Technology Incorporated (MCHP) halal? Halal. Based on AAOIFI screening, Microchip Technology Incorporated passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 90/100 (Grade: A+).

MCHP: Is Microchip Technology Incorporated Halal?

Halal

Microchip Technology Incorporated

NASDAQTechnologyUS

$94.11

+5.33%

AvoidBorderlineClean

Purify ~0.1% of income

About Microchip Technology Incorporated

Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors. These specialized microcontrollers are designed for numerous applications across industries like automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interfaces, security, and various wired and wireless connectivity needs. Beyond its processors, Microchip provides development tools that enable system designers to program its microcontroller and microprocessor units for specific tasks. Its product lineup also features Field-Programmable Gate Arrays (FPGAs) and a broad selection of analog, interface, mixed-signal, and timing components. This extensive category encompasses power management, linear, high-voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), drivers, safety, security, USB, Ethernet, wireless, and other interface products. For compact device applications, the company supplies memory products such as serial EEPROM, serial and parallel flash, serial SRAM, and serial EERAM. A significant aspect of Microchip's business involves licensing its SuperFlash embedded flash and NVM technologies. These are provided to foundries, integrated device manufacturers, and design partners for use in manufacturing their own microcontrollers, gate arrays, RF, analog, and neuromorphic computing products that require integrated non-volatile memory. Moreover, Microchip delivers engineering services, along with wafer foundry, assembly, and test subcontracting manufacturing services. It also produces specialized timing systems, application-specific integrated circuits (ASICs), and aerospace products. Microchip Technology Incorporated was established in 1989 and is headquartered in Chandler, Arizona.

Sector: Technology · Industry: Semiconductors

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 16, 2026

A+

Excellent

Exceptionally strong compliance

90Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap10.4% / 30.0%

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 16, 2026Fiscal: FY 2026Source: FMP

Purify Your MCHP Dividends

0.1% non-compliant income

MCHP has 0.1% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

51.0B

Price

$94.11

Sector

Technology

Industry

Semiconductors

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Frequently Asked Questions

Is Microchip Technology Incorporated (MCHP) halal to invest in?

Based on AAOIFI Standard 21 screening, Microchip Technology Incorporated (MCHP) is rated Halal with a compliance grade of A+ (Excellent). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Microchip Technology Incorporated get a A+ compliance rating?

Microchip Technology Incorporated (MCHP) received a grade of A+ (Excellent) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 10.4% (limit 30%); interest-bearing deposits of 1.4% (limit 30%); prohibited income of 0.10% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Microchip Technology Incorporated's Shariah verdict?

Microchip Technology Incorporated's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Microchip Technology Incorporated re-screened for Shariah compliance?

Microchip Technology Incorporated (MCHP) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 16, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.