Semtech Corporation

SMTC: Is Semtech Corporation Halal?

Semtech Corporation

NASDAQTechnologyUS

$136.13

-1.00%

Market Cap: 12.7B

Compliance Status

Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

A+

Excellent

94Score

Is Semtech Corporation (SMTC) halal? Halal. Based on AAOIFI screening, Semtech Corporation passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 94/100 (Grade: A+).

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%.

4.2% of 30.0% limit

What this means for you

You can own SMTC

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

Purify 0.1% of your income from SMTC

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

Calculate my exact amount

About Semtech Corporation

Semtech Corporation is a technology firm specializing in the creation, production, and global distribution of advanced analog and mixed-signal semiconductor components, complemented by sophisticated algorithms. The company's extensive product portfolio begins with signal integrity solutions. These encompass crucial optical data communication and video transport products utilized in various infrastructure and industrial environments. It also provides integrated circuits specifically engineered for data centers, corporate networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications. Furthermore, Semtech develops video technologies for broadcast purposes and professional audio-visual (AV) needs, including innovative video-over-IP technology. Another significant offering involves protection products, which integrate filter and termination devices with transient voltage suppressors. These components are designed to shield electronic systems from harmful voltage spikes. Semtech also provides a range of wireless and sensing technologies, including specialized radio frequency (RF) products for diverse industrial, medical, and communications sectors, alongside advanced sensing components for both industrial and consumer markets. Its product line extends to power management devices, such as switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging solutions. These are essential for controlling, modifying, regulating, and conditioning electrical power within electronic systems. Semtech primarily serves original equipment manufacturers (OEMs) and their suppliers within the enterprise computing, communications, consumer, and industrial end-markets. The company distributes its products directly, as well as through a network of independent sales representative firms and independent distributors, reaching customers across North America, Europe, Asia-Pacific, and other international regions. The corporation was established in 1960 and maintains its headquarters in Camarillo, California.

Sector: Technology · Industry: Semiconductors

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Compliance History

  1. Halalnow

    since Jun 2026

  2. Not Halal

    until the change above

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

Fiscal: Q1 2027Data source: EDGAR
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Frequently Asked Questions

Is Semtech Corporation (SMTC) halal to invest in?
Based on AAOIFI Standard 21 screening, Semtech Corporation (SMTC) is rated Halal with a compliance grade of A+ (Excellent). 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 Semtech Corporation get a A+ compliance rating?
Semtech Corporation (SMTC) received a grade of A+ (Excellent) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 4.2% (limit 30%); interest-bearing deposits of 1.8% (limit 30%); prohibited income of 0.15% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Semtech Corporation's Shariah verdict?
Semtech Corporation'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 Semtech Corporation re-screened for Shariah compliance?
Semtech Corporation (SMTC) 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 18, 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.