Is Q (Qnity Electronics, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, Q 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 (17.26% vs ≤33% threshold), interest income ratio (0.08% vs ≤5% threshold), and cash & securities ratio (3.17% vs ≤33% threshold).

Qnity Electronics, Inc., formerly known as Novus SpinCo 1, Inc., is a Wilmington-based technology company specializing in the semiconductor industry. The company provides critical electronic solutions and advanced materials used directly in semiconductor chip manufacturing. For Muslim investors, Q represents a solid, shariah-compliant opportunity in the technology sector. The stock successfully passed all four AAOIFI screening criteria, meaning its core business operations and financial structures align with Islamic finance principles. From an Islamic finance perspective, Qnity Electronics demonstrates strong financial discipline. The company's debt-to-market cap sits comfortably at 17.3%, and its cash and securities account for just 3.2% of its market capitalization, both well within permissible limits. Furthermore, impermissible interest income is virtually non-existent at 0.08% of total revenue. Since the semiconductor supply chain is generally free from shariah controversies, there is little scholarly debate regarding Qnity Electronics' business model. However, halal investors should periodically monitor the company's debt levels to ensure they remain below the 33% threshold as the business evolves. Qnity Electronics, Inc. operates in the Technology sector under the Semiconductors industry and is headquartered in Wilmington, DE, US. The company is led by CEO Jon D. Kemp and employs approximately 10,000 people.

Q 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. Q passed 4 of these 4 screens.

Although Q passes all shariah screens, it does earn $4.0M in interest income (0.08% 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 $0.08 to purify the income.

Q was last screened on 2026-04-29. 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.