NASDAQ Shariah screener · October 2026

Is ON Semiconductor Corporation (ON) Halal?

PASS

ON Semiconductor Corporation · NASDAQ: ON · Technology

The short answer

onsemi passes all three Shariah gates: it runs a permissible semiconductor business (intelligent power and sensing for automotive, industrial and AI data centers), carries $4,459.4M of interest-bearing debt (15.2% of its ~$29.38 billion market cap), and interest income of about 1.59% of revenue is under the 5% ceiling.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. ON Semiconductor Corporation, operating under the onsemi brand (incorporated in Delaware in 1992), offers 'intelligent power and intelligent sensing solutions that drive electrification, energy efficiency, safety, and automation in automotive, industrial, and other end-markets, including AI data center,' per its FY2025 Form 10-K (Item 1, Business). It reports through three segments — the Power Solutions Group (PSG), the Analog and Mixed-Signal Group (AMG), and the Intelligent Sensing Group (ISG) — serving automotive (EV drivetrain, ADAS/autonomous driving), industrial (solar, power), AI data centers and medical diagnostics (e.g. continuous glucose monitors).

The company is a semiconductor designer and manufacturer, not an interest-based lender, and its filings describe no involvement in alcohol, tobacco, gambling, pork or adult content. The pending Synaptics acquisition is another semiconductor business (human-machine interface and sensing products), introducing no haram segment. Gate 1 passes.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (15.2%, ceiling 33%). Per onsemi's Q2 2026 condensed consolidated balance sheet (July 3, 2026), net long-term debt including current maturities was $4,459.4 million: $1,500.0 million of 0.50% Notes due 2029, $1,500.0 million of 0% Notes due 2031, $804.9 million of 0% Notes due 2027 ($802.1 million classified as current), and $700.0 million of 3.875% Notes due 2028 (Note 7). Financing lease liabilities ($23.3 million total) are immaterial and excluded.

$4,459.4 million of interest-bearing debt against a market capitalization of about $29.38 billion (Finnhub, October 2, 2026) is 15.2%, under the 33% ceiling. Cash and cash equivalents of $3,514.5 million at July 3, 2026 are about 12% of market cap. Note: on October 1, 2026 onsemi amended its Synaptics merger agreement (announced June 25, 2026) to an all-cash $123-per-share deal (~$5.7 billion) with up to $2.45 billion in committed Morgan Stanley term-loan financing — committed but not yet drawn, so not on this balance sheet. If fully drawn, debt would be about $6.9 billion (~23.5% of current market cap), still under the ceiling.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (1.59%, ceiling 5%). onsemi's FY2025 Form 10-K separately discloses interest income of $95.1 million against FY2025 revenue of $5,995.4 million — about 1.59%, under the 5% ceiling.

The Q2 2026 Form 10-Q likewise separately discloses interest income — $35.1 million for the six months ended July 3, 2026 against $3,116.8 million of revenue (about 1.13%) — consistent with the verified FY2025 figure used for this gate.

Key figures used

Business: semiconductor company operating as onsemi (Delaware, incorporated 1992); intelligent power and intelligent sensing solutions for automotive (EV drivetrain, ADAS), industrial (solar, power), AI data centers and medical diagnostics; three segments: Power Solutions Group, Analog and Mixed-Signal Group, Intelligent Sensing Group
Haram assessment: no interest-based lending; no alcohol, tobacco, gambling, pork or adult-content lines; pending Synaptics acquisition is another semiconductor business (human-machine interface and sensing) - no haram segment introduced
Debt: $4,459.4M interest-bearing (net, incl. $802.1M current maturities) at July 3, 2026 ($1,500M 0.50% Notes 2029, $1,500M 0% Notes 2031, $804.9M 0% Notes 2027, $700M 3.875% Notes 2028) - 15.2% of ~$29.38B market cap (Finnhub, Oct 2, 2026), under the 33% ceiling
Cash: $3,514.5M cash and cash equivalents at July 3, 2026 (~12% of market cap)
Interest income: $95.1M in FY2025 vs $5,995.4M revenue = 1.59% - under the 5% ceiling (H1 2026: $35.1M vs $3,116.8M = 1.13%)
Market data: NASDAQ-listed; still listed on NASDAQ (confirmed October 2, 2026; live quotes, no delisting); Synaptics acquisition pending (all-cash ~$5.7B, expected mid-2027) - onsemi is the acquirer and remains public
Third-party: Zoya publishes an ON page and flags it Shariah-compliant (September 2026, interest-income figure matches this page's 1.59%); Musaffa's academy semiconductor list (June 2024) lists ON as Halal; no ShariaPortfolio rating found

Frequently asked questions

What does onsemi do?

ON Semiconductor Corporation, operating as onsemi, is a Delaware-incorporated (1992) semiconductor company that offers intelligent power and intelligent sensing solutions for automotive (electric-vehicle drivetrain, ADAS and autonomous driving), industrial (solar, power), AI data center and medical-diagnostics markets, per its FY2025 Form 10-K (Item 1, Business). It reports through three segments: the Power Solutions Group, the Analog and Mixed-Signal Group, and the Intelligent Sensing Group. FY2025 revenue was $5,995.4 million.

Is onsemi's business Shariah compliant?

onsemi designs and sells power and sensing semiconductors - it is not an interest-based lender, and its filings describe no involvement in alcohol, tobacco, gambling, pork or adult content. Its end markets are automotive electrification and safety, industrial energy efficiency, AI data centers and medical devices. The pending Synaptics acquisition is another semiconductor business (human-machine interface and sensing products), so it introduces no haram segment either. The business passes this screener's first gate.

How much interest-bearing debt does onsemi have?

Per its Q2 2026 Form 10-Q (condensed consolidated balance sheet at July 3, 2026), net interest-bearing debt including current maturities was $4,459.4 million: $1,500.0 million of 0.50% Notes due 2029, $1,500.0 million of 0% Notes due 2031, $804.9 million of 0% Notes due 2027 ($802.1 million classified as current) and $700.0 million of 3.875% Notes due 2028 (Note 7). Financing lease liabilities of $23.3 million are immaterial and excluded. $4,459.4 million against a market cap of about $29.38 billion (Finnhub, October 2, 2026) is 15.2%, under the 33% ceiling. The committed but undrawn $2.45 billion Morgan Stanley term loan tied to the Synaptics acquisition is not yet on the balance sheet.

How much interest income does onsemi earn?

onsemi's FY2025 Form 10-K separately discloses interest income of $95.1 million against FY2025 revenue of $5,995.4 million - about 1.59%, under the 5% non-compliant income ceiling. The Q2 2026 Form 10-Q likewise discloses $35.1 million of interest income for the six months ended July 3, 2026 against $3,116.8 million of revenue (about 1.13%), consistent with the annual figure.

What do third-party Shariah screeners say about onsemi?

Zoya publishes an ON Semiconductor (ON) page and, as of September 2026, flags ON as Shariah-compliant; its published interest-income figure ($95.1 million on $5,995.4 million revenue, 1.59%) matches this page's gate-3 calculation. Musaffa's academy list of large/mega-cap semiconductor stocks (June 2024) lists ON Semiconductor (NASDAQ: ON) as Halal. I could not find a ShariaPortfolio rating page for ON. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).