Is TXN (Texas Instruments Incorporated) Halal or Haram?

Based on our AAOIFI-standard shariah screening, TXN 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 (6.24% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (1.98% vs ≤33% threshold).

Texas Instruments Incorporated (TXN) is a global leader in the semiconductor industry, specializing in the design and manufacturing of analog and embedded processing chips. Its core products, such as power management solutions and signal chain products, are essential components found in countless electronics, from automotive systems to everyday consumer devices. For Muslim investors, TXN represents a solid Halal investment opportunity within the technology sector. The company successfully passes all AAOIFI shariah screens, meaning its core business activities are fully permissible and its financial structure does not violate Islamic principles regarding excessive debt or interest. From an Islamic finance perspective, Texas Instruments boasts an exceptionally clean balance sheet. The company's debt-to-market cap ratio sits at a very conservative 6.2%, well below the 33% threshold, and it generates zero non-compliant interest income, making it a highly attractive option for those seeking strict financial purity. Since there are no major scholarly debates regarding the permissibility of semiconductor manufacturing, TXN is widely accepted as shariah-compliant. However, halal investors should continue to monitor the company's debt levels and cash reserves during future quarterly earnings to ensure they remain comfortably below the 33% AAOIFI limits. Texas Instruments Incorporated operates in the Technology sector under the Semiconductors industry and is headquartered in Dallas, TX, US. The company is led by CEO Haviv Ilan and employs approximately 34,000 people.

TXN 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. TXN passed 4 of these 4 screens.

TXN has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

TXN was last screened on 2026-04-27. 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.