Is WDC (Western Digital Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, WDC 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 (3.48% vs ≤33% threshold), interest income ratio (0.47% vs ≤5% threshold), and cash & securities ratio (1.69% vs ≤33% threshold).

Western Digital Corporation (WDC) is a global leader in data storage technology, manufacturing essential computer hardware. The company designs and produces a wide array of storage solutions, including hard disk drives (HDDs) and solid-state drives (SSDs) used in desktop PCs, gaming consoles, mobile phones, and automotive systems. For Muslim investors utilizing HalalStocks.co.uk, Western Digital represents a completely Halal investment opportunity. The stock successfully passes all four AAOIFI shariah screens, meaning its core business activities and financial practices align perfectly with Islamic principles. Financially, WDC stands out for its incredibly conservative capital structure, which is a major positive for halal portfolios. The company carries a debt-to-market cap ratio of just 3.5%, alongside a minimal cash and securities ratio of 1.7%, ensuring investors are not overly exposed to interest-bearing leverage. Furthermore, its interest income is nearly nonexistent at 0.47% of total revenue. While Western Digital is cleanly compliant today, halal investors should continue to monitor its quarterly earnings for any significant shifts in debt issuance or interest-bearing acquisitions. Given the cyclical nature of the semiconductor and storage industry, maintaining these low debt ratios during market downturns will be key to its ongoing shariah compliance. Western Digital Corporation operates in the Technology sector under the Computer Hardware industry and is headquartered in San Jose, CA, US. The company is led by CEO Tiang Yew Tan and employs approximately 40,000 people.

WDC 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. WDC passed 4 of these 4 screens.

Although WDC passes all shariah screens, it does earn $45.0M in interest income (0.47% 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 $0.47 to purify the income.

WDC 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.