What is Microchip Technology Incorporated's Shariah compliance score?

Microchip Technology Incorporated (MCHP) has a Shariah compliance score of 88/100 (Grade: A, Very Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Microchip Technology Incorporated pass AAOIFI screening?

Microchip Technology Incorporated (MCHP) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (MCHP: 11.9%), (3) interest-bearing deposits below 30% (MCHP: 1.6%), and (4) prohibited income below 5% (MCHP: 0.1%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Microchip Technology Incorporated stock?

Microchip Technology Incorporated (MCHP) has a non-permissible income ratio of 0.10%. Muslim investors should purify this percentage of any dividends received and capital gains realized from MCHP shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Microchip Technology Incorporated for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Microchip Technology Incorporated (MCHP) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about MCHP's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

MCHP: Is Microchip Technology Incorporated Halal?

Microchip Technology Incorporated

NASDAQTechnologyUS

$80.96

+2.40%

Market Cap: 44.0B

Compliance Status

Halal

Screened on Jul 15, 2026 · AAOIFI Standard 21

Very Good

88Score

Is Microchip Technology Incorporated (MCHP) halal? Halal. Based on AAOIFI screening, Microchip Technology Incorporated passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 88/100 (Grade: A).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

11.9% of 30.0% limit

What this means for you

You can own MCHP

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purify 0.1% of your income from MCHP

That is about $0.10 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

About Microchip Technology Incorporated

Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors. These specialized microcontrollers are designed for numerous applications across industries like automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interfaces, security, and various wired and wireless connectivity needs. Beyond its processors, Microchip provides development tools that enable system designers to program its microcontroller and microprocessor units for specific tasks. Its product lineup also features Field-Programmable Gate Arrays (FPGAs) and a broad selection of analog, interface, mixed-signal, and timing components. This extensive category encompasses power management, linear, high-voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), drivers, safety, security, USB, Ethernet, wireless, and other interface products. For compact device applications, the company supplies memory products such as serial EEPROM, serial and parallel flash, serial SRAM, and serial EERAM. A significant aspect of Microchip's business involves licensing its SuperFlash embedded flash and NVM technologies. These are provided to foundries, integrated device manufacturers, and design partners for use in manufacturing their own microcontrollers, gate arrays, RF, analog, and neuromorphic computing products that require integrated non-volatile memory. Moreover, Microchip delivers engineering services, along with wafer foundry, assembly, and test subcontracting manufacturing services. It also produces specialized timing systems, application-specific integrated circuits (ASICs), and aerospace products. Microchip Technology Incorporated was established in 1989 and is headquartered in Chandler, Arizona.

Sector: Technology · Industry: Semiconductors

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 15, 2026

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.

Fiscal: FY 2026Data source: EDGAR

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Frequently Asked Questions

Is Microchip Technology Incorporated (MCHP) halal to invest in?

Based on AAOIFI Standard 21 screening, Microchip Technology Incorporated (MCHP) 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 Microchip Technology Incorporated get a A compliance rating?

Microchip Technology Incorporated (MCHP) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 11.9% (limit 30%); interest-bearing deposits of 1.6% (limit 30%); prohibited income of 0.10% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Microchip Technology Incorporated's Shariah verdict?

Microchip Technology Incorporated'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 Microchip Technology Incorporated re-screened for Shariah compliance?

Microchip Technology Incorporated (MCHP) 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: Jul 15, 2026.

Screened according to AAOIFI Standard No. 21 · 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.