Is Tower Semiconductor Ltd. (TSEM) halal? Halal. Based on AAOIFI screening, Tower Semiconductor Ltd. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 82/100 (Grade: A).

Tower Semiconductor Ltd.

TSEM: Is Tower Semiconductor Ltd. Halal?

Halal

Tower Semiconductor Ltd.

NASDAQTechnologyIL

$262.92

+1.77%

Purify ~3% of income

About Tower Semiconductor Ltd.

Tower Semiconductor Ltd. operates as a prominent independent semiconductor foundry, engaged in the worldwide production and sale of analog-intensive, mixed-signal semiconductor components. The company provides a comprehensive suite of customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensors, integrated power management solutions, and MEMS. Furthermore, it offers wafer fabrication services, a design enablement platform to streamline the development process, and specialized services for process transfer optimization and new product development. Tower Semiconductor caters to both integrated device manufacturers and fabless companies, with its products serving a wide range of industries such as consumer electronics, computing, telecommunications, automotive, industrial, aerospace, defense, and medical devices. Established in 1993 and based in Migdal Haemek, Israel, its market reach extends across the United States, Japan, other Asian regions, and Europe.

Sector: Technology 路 Industry: Semiconductors

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 15, 2026
A

Very Good

Strong compliance across all metrics

82Score

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 Cap0.5% / 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 15, 2026Fiscal: FY 2025Source: FMP

Purify Your TSEM Dividends

3.0% non-compliant income

TSEM has 3.0% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

29.4B

Price

$262.92

Sector

Technology

Industry

Semiconductors

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Frequently Asked Questions

Is Tower Semiconductor Ltd. (TSEM) halal to invest in?
Based on AAOIFI Standard 21 screening, Tower Semiconductor Ltd. (TSEM) is rated Halal with a compliance grade of A (Very Good). 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 Tower Semiconductor Ltd. get a A compliance rating?
Tower Semiconductor Ltd. (TSEM) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 0.5% (limit 30%); interest-bearing deposits of 3.9% (limit 30%); prohibited income of 2.95% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Tower Semiconductor Ltd.'s Shariah verdict?
Tower Semiconductor Ltd.'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 Tower Semiconductor Ltd. re-screened for Shariah compliance?
Tower Semiconductor Ltd. (TSEM) 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 15, 2026.

Screened according to AAOIFI Standard No. 21 路 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.