MTSI

MACOM Technology Solutions Holdings, Inc.

HALAL

Score: 82/100

stock

Is MTSI Halal?

Analog, RF, and microwave semiconductors for high-performance end markets — permissible semiconductor business.

What You Should Know

MACOM Technology Solutions is a US designer and manufacturer of analog, radio-frequency (RF), microwave, millimeter-wave, photonic, and optoelectronic semiconductor products. The product portfolio includes RF and microwave integrated circuits, lasers, photodetectors, modulator drivers, transimpedance amplifiers, power amplifiers, switches, and integrated modules. End markets span telecom and data-center optical communications (long-haul, metro, and intra-data-center coherent and high-speed networking), industrial and medical (test and measurement, medical imaging, sensors), and aerospace and defense (radar, electronic warfare, satellite communications). Analog and RF semiconductor design and manufacturing are unambiguously permissible at the activity level — the products are general-purpose semiconductor components. The Sharia consideration is the qualitative screen on aerospace-and-defense end-market exposure. MACOM has been acquiring assets (notably the 2023 Wolfspeed RF business and the 2024 ENGIN-IC acquisition) and the debt-to-market-cap ratio has at times sat near the 33% Sharia threshold. Muslim investors should verify both the qualitative screen and the current financial ratios at their preferred screening platform.

⚠️ Concerns

•Meaningful aerospace-and-defense end-market revenue share — some strict Sharia advisory boards apply defense-end-market screens that exclude such names even when the products are general-purpose RF and microwave semiconductors
•Acquisition-financing debt from the 2023 Wolfspeed RF and 2024 ENGIN-IC acquisitions — verify the current debt-to-market-cap ratio against the 33% Sharia threshold
•Cyclical exposure to the optical-components and telecom-and-data-center semiconductor cycle (business-quality consideration rather than Sharia screen concern)
•Minor interest income on cash reserves
•Customer concentration with a small group of large optical-components, data-center, and defense-prime customers