Is MU (Micron Technology, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, MU is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (3.21% vs ≤33% threshold), interest income ratio (1.33% vs ≤5% threshold), and cash & securities ratio (2.17% vs ≤33% threshold).

Micron Technology is a global leader in the semiconductor industry, specializing in the design and manufacture of essential memory and storage solutions. Their product portfolio is dominated by DRAM (dynamic random access memory) and NAND flash memory, which are critical components in everything from smartphones and personal computers to massive data centers and automotive electronics. As one of the few major players alongside Samsung and SK Hynix, Micron holds a strategic position in the global technology supply chain. For Muslim investors, Micron is classified as Halal, having passed all four rigorous AAOIFI screening criteria. The company's business model is inherently permissible, as it deals in tangible technology hardware rather than prohibited services like gambling or conventional banking. This ' Pass' status means you can include MU in your portfolio without compromising shariah principles, provided you continue to monitor its financial health quarterly. Financially, Micron stands out for its strong adherence to Islamic debt ratios. With interest-bearing debt sitting at just 3.2% of its market cap, the company is far below the 33% limit, signaling that it is not heavily leveraged with haram loans. Additionally, its cash and interest-bearing securities make up only 2 .2% of its market cap, and interest income is a negligible 1.33% of revenue, ensuring that the vast majority of its earnings are derived from legitimate trade. While Micron is currently fully compliant, investors should keep an eye on the semiconductor industry's cyclical nature, which can sometimes lead companies to take on debt during downturns. However, given Micron's current low leverage and strong cash flow generation from its Compute and Mobile business units, it remains a robust option for shariah-conscious portfolios. Micron Technology, Inc. operates in the Technology sector under the Semiconductors industry and is headquartered in Boise, ID, US. The company is led by CEO Sanjay Mehrotra and employs approximately 48,000 people.

MU was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. MU passed 4 of these 4 screens.

Although MU passes all shariah screens, it does earn $496.0M in interest income (1.33% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.33 to purify the income.

MU was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.