Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Taiwan Semiconductor Manufacturing Company Limited (TSM) Halal?

PASS

Taiwan Semiconductor Manufacturing Company Limited · NYSE: TSM · Technology

The short answer

Yes — Taiwan Semiconductor Manufacturing Company (TSM) passes this Shariah stock screen. The world's largest pure-play semiconductor foundry (Hsinchu, Taiwan; 12,682 products for 534 customers in 2025; end markets HPC, smartphones, IoT, automotive, consumer electronics) has no disclosed prohibited business lines. Its interest-bearing debt of NT$1,033.0B (~US$32.9B) is about 1.4% of its ~US$2.38T market cap (ADR at US$459.20, October 1, 2026), below the ~33% ceiling. Interest income of NT$105.7B is about 2.78% of FY2025 revenue (NT$3,809.1B), below the 5% non-compliant income ceiling. Musaffa rates TSMC Compliant; Zoya covers it but its public page gives no definitive current status; no ShariaPortfolio rating was found — honestly reported as absent, not invented.

Gate 1 — Business activity: PASS

Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), known as TSMC, is the world's largest pure-play semiconductor foundry (roughly 70% foundry market share), founded in 1987 and headquartered in Hsinchu, Taiwan. Per its 2025 Annual Report it "pioneered the pure-play foundry business model with an exclusive focus on manufacturing its customers' products" and never competes with its customers, manufacturing 12,682 products for 534 customers in 2025 across high-performance computing, smartphones, IoT, automotive and consumer electronics (customers include Apple, AMD and Nvidia). Its shares trade on the NYSE as American Depositary Receipts (1 ADR = 5 ordinary shares); no delisting was found. No prohibited lines are disclosed anywhere in its business description — no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, weapons manufacturing or adult entertainment. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Per TSMC's Form 20-F for fiscal 2025 (year ended December 31, 2025), aggregate long-term debts were NT$1,032.988B (including NT$136.926B classified as current), about US$32.9B at ~31.37 NT$/USD. Against a market cap of about US$2.38T (25.93B implied shares at the ADR price of US$459.20 on October 1, 2026, with 1 ADR = 5 ordinary shares), debt ÷ market cap is about 1.4%, far below the ~33% ceiling. Cash, cash equivalents and current marketable securities of NT$3,068.6B (~US$97.8B) are about 4.1% of market cap, well within the ~33% guideline. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

The Form 20-F reports interest income of NT$105.739B against net revenue of NT$3,809.054B for fiscal 2025 — about 2.78% of revenue, below the 5% non-compliant income ceiling. Finance costs were only NT$12.4B, roughly 1/156th of operating income. The interest-income component is the purification item: scholars who purify dividends would apply this ~2.78% rate to TSMC dividends received. Gate 3 passes. Facts only.

Key figures used

Frequently asked questions

What does Taiwan Semiconductor do?

Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), known as TSMC, is the world's largest pure-play semiconductor foundry, founded in 1987 and headquartered in Hsinchu, Taiwan. Per its 2025 Annual Report it "pioneered the pure-play foundry business model with an exclusive focus on manufacturing its customers' products" and never competes with its customers. In 2025 it manufactured 12,682 products for 534 customers, serving high-performance computing, smartphones, IoT, automotive and consumer electronics end markets (customers include Apple, AMD and Nvidia). Its shares trade on the NYSE as American Depositary Receipts (1 ADR = 5 ordinary shares).

Why does TSMC pass this Shariah stock screen?

TSMC passes all three gates of this screen. Its business is a pure-play semiconductor foundry with no disclosed prohibited lines (no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, weapons manufacturing or adult entertainment). Its aggregate interest-bearing debt of NT$1,033.0B (~US$32.9B) is about 1.4% of its ~US$2.38T market cap, far below the ~33% ceiling. Its interest income of NT$105.7B is about 2.78% of NT$3,809.1B revenue, below the 5% non-compliant income ceiling. This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.

What is TSMC's interest-bearing debt ratio?

Per TSMC's Form 20-F for fiscal 2025, aggregate long-term debts were NT$1,032.988B (including NT$136.926B classified as current), about US$32.9B at ~31.37 NT$/USD. Against a market cap of about US$2.38T (25.93B shares implied at the ADR price of US$459.20 on October 1, 2026, with 1 ADR = 5 ordinary shares), total interest-bearing debt ÷ market cap is about 1.4% — comfortably below the ~33% ceiling. Cash, cash equivalents and current marketable securities of NT$3,068.6B (~US$97.8B) are about 4.1% of market cap.

What is TSMC's non-compliant income ratio?

TSMC's Form 20-F for fiscal 2025 reports interest income of NT$105.739B against net revenue of NT$3,809.054B — about 2.78% of revenue, below the 5% non-compliant income ceiling. Finance costs were only NT$12.4B, roughly 1/156th of operating income. The interest-income component is the purification item: scholars who purify dividends would apply this ~2.78% rate to TSMC dividends received.

Do Zoya, Musaffa, or ShariaPortfolio cover TSMC?

Musaffa covers TSMC (TSM / 2330.TW) with a Compliant status in its 2026 most-searched halal stocks list. Zoya also covers TSM, but its public page renders ambiguous status templates with no definitive current rating extractable from the text, so it is honestly reported as covered-but-inconclusive rather than a pass. No public ShariaPortfolio rating for TSM was found — reported as absent, not invented. This page applies the screen directly from TSMC's own filings.

Sources

Screened 2026-10-01 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).