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

Taiwan Semiconductor Manufacturing Company Limited

TSM: Is Taiwan Semiconductor Manufacturing Company Limited Halal?

Halal

Taiwan Semiconductor Manufacturing Company Limited

NYSETechnologyTW

$432.15

+1.48%

Purify ~2.5% of income

About Taiwan Semiconductor Manufacturing Company Limited

Taiwan Semiconductor Manufacturing Company Limited (TSMC), along with its affiliated entities, operates globally in the semiconductor industry, specializing in the manufacturing, packaging, meticulous testing, and worldwide distribution of integrated circuits and other crucial semiconductor components. Its expansive international presence covers key markets such as Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company is renowned for its diverse array of wafer fabrication processes. These capabilities enable the production of various advanced semiconductor types, including complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal devices, radio frequency components, embedded memory, and bipolar CMOS mixed-signal circuits. Beyond its core foundry services, TSMC extends its offerings to include dedicated customer and engineering support. It also undertakes the production of specialized masks, actively invests in burgeoning technology startups, and manages the entire lifecycle鈥攆rom research and development through to manufacturing, packaging, testing, and sales鈥攐f color filters. Furthermore, the company provides a range of investment services. TSMC's cutting-edge products are indispensable across numerous sectors, powering high-performance computing, modern smartphones, Internet of Things (IoT) ecosystems, sophisticated automotive systems, and a broad spectrum of digital consumer electronics. Established in 1987, the enterprise is officially headquartered in Hsinchu City, Taiwan.

Sector: Technology 路 Industry: Semiconductors

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 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 Cap1.7% / 30.0%

Compliance History

  1. Halalnow

    since Jun 2026

  2. Not Halal

    until the change above

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

Screened: Jun 18, 2026Fiscal: FY 2025Source: FMP-ADR

Purify Your TSM Dividends

2.5% non-compliant income

TSM has 2.5% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

2.2T

Price

$432.15

Sector

Technology

Industry

Semiconductors

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Frequently Asked Questions

Is Taiwan Semiconductor Manufacturing Company Limited (TSM) halal to invest in?
Based on AAOIFI Standard 21 screening, Taiwan Semiconductor Manufacturing Company Limited (TSM) 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 Taiwan Semiconductor Manufacturing Company Limited get a A compliance rating?
Taiwan Semiconductor Manufacturing Company Limited (TSM) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 1.7% (limit 30%); interest-bearing deposits of 5.1% (limit 30%); prohibited income of 2.45% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Taiwan Semiconductor Manufacturing Company Limited's Shariah verdict?
Taiwan Semiconductor Manufacturing Company Limited'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 Taiwan Semiconductor Manufacturing Company Limited re-screened for Shariah compliance?
Taiwan Semiconductor Manufacturing Company Limited (TSM) 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 18, 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.