Is onsemi (ON) Halal? 2026 AAOIFI Analysis
We use primary sources, dated financial data, and a documented review process. Read our editorial policy.
AAOIFI screening result
ON: Compliant
onsemi's semiconductor operations pass the activity screen and its three financial ratios are below the AAOIFI limits.
Based on Halalytic's AAOIFI 30/30/5 screen dated July 11, 2026, onsemi (ON) is compliant. This is a dated screening snapshot, not a permanent fatwa: company filings, market capitalization, and scholarly analysis can change the result.
What does onsemi do?
onsemi sells intelligent power and sensing semiconductors used in automotive, industrial, energy, and data-centre applications. Semiconductor manufacturing and sales are generally permissible. Its aerospace and defence customer exposure may matter to investors applying additional ethical exclusions beyond the standard AAOIFI sector screen.
Primary company source: onsemi company overview.
ON AAOIFI screening breakdown
| Screen | Result | AAOIFI limit | Status |
|---|---|---|---|
| Interest-bearing debt / market cap | 8.69% | Below 30% | Pass |
| Cash and interest-bearing securities / market cap | 7.51% | Below 30% | Pass |
| Non-permissible income / revenue | 1.57% | Below 5% | Pass |
Business activity: Pass · Sector: Technology · Industry: Semiconductors. The income screen uses reported interest income as a proxy when available.
Why the result can change
The company currently has ample room under the debt and cash limits. The non-permissible-income proxy also passes, though at a higher percentage than several other technology names in this batch. Semiconductor cycles, acquisitions, and large fabrication investments can change both the balance sheet and market value.
- Interest income and returns on the investment portfolio
- Debt and capital spending tied to manufacturing capacity
- Aerospace and defence exposure under an investor's additional ethical policy
Investment questions beyond halal status
Passing a Shariah screen does not mean a stock is undervalued, financially safe, or suitable for a particular portfolio. A non-compliant verdict is also not a prediction that the share price will fall.
- How concentrated is revenue in automotive customers?
- Can silicon-carbide investments earn acceptable returns?
- How severe could the next semiconductor inventory correction be?